Tech war: US to dwarf China in advanced chip-making capacity by 2032, report finds
- The US would grow its global share of advanced chips to 28 per cent by 2032, while mainland China is expected to account for just 2 per cent
- China achieved a three-fold increase in wafer fab capacity between 2012 and 2022, while the US only expanded capacity 11 per cent in the same period
The US is expected to triple its domestic semiconductor manufacturing capacity by 2032 and dwarf China’s output in advanced chips, according to a report published by the US-based Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).
The US would grow its share of advanced chips, those below 10-nanometres for applications such as the latest smartphones, to 28 per cent by 2032, while mainland China is expected to account for just 2 per cent of that category in the same time frame, according to the report released on Wednesday.
In 2022, global capacity for production of sub-10-nm chips was dominated by Taiwan and South Korea with 69 per cent and 31 per cent of the share, respectively.
The expected catch-up by the US is partly attributed to the Chips and Science Act that Washington passed in 2022 to boost the country’s chip-making capacity.
For instance, the world’s biggest contract chip maker, Taiwan Semiconductor Manufacturing Co (TSMC), has agreed to build a 2-nm plant in Arizona as part of a planned total investment of US$65 billion in the state.
The US is forecast to hold a 14 per cent share of the world’s chip manufacturing capacity by 2032, but Taiwan and mainland China will continue to lead in global wafer fabrication capacity with 21 per cent and 17 per cent respectively by 2032, according to the report.
