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US IC design market share threatens to plummet! Practitioners call for quick government subsidies

Update time : 2022-12-02 10:35:25

According to a research report, the US has always been a leader in chip design, with world-class players such as NVIDIA, Intel, Qualcomm, Texas Instruments, AMD and Broadcom. However, without continued government support for the industry in the future, the U.S. could see a significant decline in its share of the global market.

According to a report by the Semiconductor Industry Association (SIA) and the Boston Consulting Group, the US has seen its share of the chip design industry continue to decline in recent years, from over 50% in 2015 to 46% by 2021. In the future, without continued government support, this proportion could fall to 36% by 2030. The report highlights that the US global share of chip manufacturing has fallen from 37% in the 1990s to just 12% in 2022, indicating that the US has lost its leadership in chip manufacturing, which led to the Biden administration passing the Chip and Science Act in 2022. However, while Intel both designs and manufactures chips, so-called fabless chip design companies such as Nvidia and Qualcomm rely on companies such as TSMC to manufacture and produce chips, which has its risks in the future compared to many other chip design manufacturers, including those in China or South Korea, who have received government support to further increase their market share.
The report further highlights that while the US plans to invest an estimated US$20-30 billion in semiconductor design and R&D by 2030, including US$15-20 billion in investment lease tax credits for chip design, in order to maintain the US's long-term leadership position. However, of the $39 billion in recent Chip and Science Act grants, all are for manufacturing grants for chip production, plus $13 billion for R&D, but nothing is dedicated to the chip design component. In addition, the US chip design industry is also facing a manpower shortage of 23,000 employees, which would allow the US government to help train the relevant talent if it were to provide financial assistance.

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