US Semiconductor Market Size and Forecast by Product Type, Node Type, Application, and Distribution Channel: 2019-2032

US Semiconductor Market Growth and Performance

• In 2023, the US semiconductor market size represented US$ 143.69 Billion.
• This market is projected to register a compound annual growth rate (CAGR) of 7.1% from 2024 to 2032, resulting in a forecasted market value of US$ 276.22 Billion by the end of 2032.

US Semiconductor Market Outlook

The US semiconductor market is undergoing a transformation, driven by substantial government funding, policy changes, and expanding domestic manufacturing capabilities. With the CHIPS and Science Act providing $52.7 billion in subsidies and tax incentives for semiconductor production, research, and workforce development, the US aims to bolster its global competitiveness and reduce dependency on foreign semiconductor supply chains. The US semiconductor market growth is fueled by major investments from both the government and private sector. The $39 billion subsidy program for semiconductor manufacturing, equipment, and materials has attracted over 460 companies expressing interest in funding. Additionally, the CHIPS Act provides a 25% investment tax credit, valued at $24 billion, incentivizing the expansion of domestic chip production.

Leading chipmakers are investing heavily in new manufacturing facilities. Intel is investing over $40 billion in four fabs across Arizona and Ohio. TSMC is expanding its footprint in Arizona with a 5nm-capable fab, while Samsung Foundry is constructing a new semiconductor plant in Texas. GlobalFoundries and Texas Instruments are also ramping up their production capacity to support growing demand. The US semiconductor market outlook remains optimistic, with a renewed focus on advanced chip manufacturing, AI-driven semiconductor technology, and domestic supply chain resilience. The U.S. Department of Commerce has allocated $1.4 billion to the CHIPS National Advanced Packaging Manufacturing Program (NAPMP) to support next-generation chip packaging. Key awards include $300 million for advanced substrates and material research and $1.1 billion for a new Advanced Packaging Piloting Facility in Arizona.

US Semiconductor Market Trends

Several key US semiconductor market trends are shaping the industry:

• Expansion of Domestic Manufacturing: The CHIPS Act is driving the establishment of new fabs by Intel, TSMC, Samsung, and Texas Instruments.
• Advanced Packaging Investment: The NAPMP funding will accelerate U.S. capabilities in semiconductor packaging and integration.
• Government Policy and Trade Regulations: The U.S. is tightening export controls on AI chips and restricting semiconductor manufacturing equipment exports to China.
• National Security and Semiconductor Supply Chain: The government is prioritizing domestic chip production to reduce reliance on foreign-made chips and protect critical technologies.
• Public-Private Partnerships: Collaborations between U.S. firms and academic institutions, such as Arizona State University, are driving innovation and workforce training in semiconductor engineering.

US Semiconductor Market Competitive Landscape

The US semiconductor market competitive landscape is evolving as major chipmakers expand their domestic operations. Companies like Intel, TSMC, Samsung, GlobalFoundries, and Texas Instruments are at the forefront of manufacturing advancements. AI chip development is becoming a major focus, with TSMC investing $17.14 billion in AI chip packaging and U.S. chipmakers developing next-generation AI semiconductors to compete globally. However, the market faces increasing competition from foreign semiconductor firms and geopolitical challenges, including new trade restrictions on China. Additionally, Trump’s proposed tariffs on Taiwan's semiconductor industry could impact supply chains and trade relations, further reshaping the competitive landscape.

US Semiconductor Market Development

The US semiconductor market development is being driven by significant investment in R&D, manufacturing expansion, and government policies supporting domestic chip production. Key developments include:

• Massive FDI in Semiconductor Manufacturing: Intel, TSMC, and Samsung's combined investments exceed $100 billion, reinforcing the U.S. semiconductor ecosystem.
• Workforce Development Initiatives: The CHIPS Act is expected to create 93,000 construction jobs and 43,000 permanent semiconductor jobs, strengthening the skilled labor pool.
• Legislative and Policy Support: The government’s push to limit China’s access to advanced semiconductor technology ensures U.S. dominance in AI and high-performance computing chips.

US Semiconductor Market Scope