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After decades of offshoring, the US is making a concerted push to reestablish a domestic semiconductor manufacturing base. Recent chip shortages and geopolitical tensions have spotlighted critical vulnerabilities, prompting federal and private investments in domestic production. The CHIPS Act earmarked more than $50 billion in federal support, spurring $348 billion in private sector commitments across 18 projects in 12 states through 2030. Other regions, including Europe and Asia, are accelerating similar initiatives.
But ambition alone won’t deliver outcomes. High-end chip production depends on scale, precision and consistent demand. Factories will need to maintain high utilization, attract long-term customer commitments and operate within a robust ecosystem of skilled talent and infrastructure — or take decisive steps to build it out. Without careful planning, overcapacity and price pressure could undercut margins. Semiconductor leaders should design business models that strengthen supply chain resilience while protecting profitability — and weigh the cost of supply disruptions against the price of localized flexible capacity.
But can the US drive semiconductor resilience without losing commercial edge?
Geopolitical exposure: Taiwan’s central role and the case for diversification
Taiwan remains the global epicenter for advanced chip production. TSMC alone produces as many wafers annually as the entire US, surpassing Europe by a factor of six. US companies are working to catch up. Intel is working to regain process leadership, but others still trail. Packaging and assembly along with critical inputs such as raw wafers and specialty chemicals remain largely concentrated in Asia.
Building a self-sufficient US semiconductor ecosystem will require more than new fabrication plants (fabs.) It demands a full rethinking of the value chain. To succeed, leaders must reestablish onshore capabilities across materials, manufacturing, assembly and logistics.
And there’s urgency. One-third of global chip production could face climate-related risks within a decade. From smartphones to satellites, much of the US economy depends on a vulnerable chain. Semiconductor industry leaders should ask: How far will we go — and how much are we prepared to spend — to mitigate geographic concentration?
A phased approach may offer the clearest path forward: Stockpile rare inputs now, diversify sourcing in the medium term and invest in long-term innovation to reduce dependencies. The geopolitical calculus is changing. The need for strategic action remains.
Environmental trade-offs: Scaling with sustainability in mind
Regions seeing the most fab development, such as Arizona and Texas, also rank among the most water-stressed. Chip manufacturing consumes tens of millions of gallons of water annually, produces hazardous waste and demands power at the scale of a small city. Environmental considerations aren’t an afterthought. They’re fundamental to the long-term viability of chip manufacturing in these regions.
Stakeholders expect meaningful progress on carbon, water and waste targets. Some chipmakers are responding by integrating environmental considerations into fab design and incorporating data on water availability into the capital planning process. They’re also adopting water recycling systems, sourcing clean energy, enhancing transparency in reporting and sharing detailed metrics such as water reclamation rates and emissions data.
But focusing on corporate sustainability alone won’t suffice. The supply chain must evolve in parallel. Upstream challenges — like copper extraction in drought-prone areas — could become chokepoints. Semiconductor companies can draw lessons from data center developers who have done this well. A proactive tech-enabled sustainability strategy can help manage risk, reduce costs and align to investor priorities.
Regions seeing the most fab development, such as Arizona and Texas, also rank among the most water-stressed.
Talent: The missing link in America’s fab renaissance
No facility operates without people, and talent scarcity is a growing concern. According to the Semiconductor Industry Association, the US needs to fill an estimated 115,000 skilled roles by 2030 spanning engineering, trades and operations in the semiconductor industry.
Universities are expanding programs; however, industry-academic collaboration seems less developed compared to countries like Taiwan and Korea. Immigration barriers remain high. Many announced fab projects draw from the same finite talent pool.
Addressing the gap requires multi-pronged long-term workforce strategies. Leading companies are locating training centers with fabs, launching certification programs and drawing talent from adjacent industries like the military or automotive sector. The CHIPS Act has linked funding to workforce development prompting a shift from intention to implementation.
Leaders should make workforce planning a core pillar of business strategy and consider some key questions. Have we mapped our future talent needs? Are we building partnerships to meet demand at scale? Do we have plans to reskill not just hire? Companies that answer “yes” will help shape the future of the industry.
4 key imperatives for semiconductor executives
Progress demands more than capital — it requires strategic foresight, agility and bold leadership. CEOs and COOs can lead across four imperatives.
- Prioritize capital with resilience in mind
Don’t just spend –– spend smart. Take advantage of public incentives but tie capital deployment to demand signals. Incorporate environmental considerations into site selection and design. Scenario planning can help navigate policy changes, economic shifts and climate change. Your goal is to balance the cost of disruption with the cost of redundancy. - Build sustainability into the foundation
Sustainability goals can’t be retrofitted. Integrate water reuse, clean energy, waste tracking and life-cycle analysis into fab design and sourcing. Regulatory expectations will likely rise, and early movers will shape industry norms. - Invest in talent ecosystems not pipelines
Fabs require a range of roles from PhDs to welders, maintenance technicians and safety officers. Build deep partnerships with universities, local governments and communities. Fund apprenticeship programs. Support immigration reforms that unlock access to global talent. In a zero-sum labor market, only ecosystems succeed. - Reengineer the supply chain for volatility
Redundancy, friend-shoring and diversified supplier networks aren’t optional. They’re strategic. Qualify secondary suppliers. Modularize capacity. Build resilience into your operating model.
From intent to impact
Semiconductors power modern life, and they represent a strategic inflection point for the US. Decisions made today can shape the nation’s economic and technological future. The opportunity is real, but it requires bold leadership and the right team. If you’re ready to lead the next era of US semiconductor growth, we're here to help you build it.
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