According to the Semiconductor Industry Association (SIA), chip sales reached half a trillion dollars in 2021. Since 2019, chip shortages and supply chain issues have wreaked havoc as industries struggle with supply and demand. However, despite the global chip shortage, a record 1.5 trillion semiconductor units were shipped out within the industry last year. Demand for semiconductor production is only predicted to increase as technological advances will depend more and more on chips to run essential products such as health devices, vehicles, computers, and just about everything else.
How is America Solving the Global Chip Shortage?
As part of the $2 trillion economic stimulus package, U.S. President Joe Biden allocated $50 billion to semiconductor manufacturing and research in the last year. The Biden administration also implemented a bill known as the CHIPS for America Act. Currently working its way through legislation, the bill aims to incentivize advanced research and development domestically to improve and secure the supply chain.
The past few years have been evidence that the solution is eliminating our international dependency on chip production. Intel Corporation recently announced the construction of a 20 billion dollar factory in Columbus, Ohio. The company expects the site to be fully functional by 2025 and predicts that it will be the largest manufacturing site in the world.