Stocklytics: U.S. Global Semiconductor Market Share Grows 64 Percent in 5 Years
IT News Online Staff
2024-08-28
According to Stocklytics, the U.S. semiconductor market share has risen by over 64 percent since 2019, reclaiming a significant portion of the global market.
"The U.S. semiconductor industry's comeback highlights the nation's adaptability and innovation. With strong investments in R&D, a skilled workforce and supportive policies, the U.S. has become a global leader in semiconductor manufacturing, boosting economic growth and technological security," said Edith Reads, financial analyst, Stocklytics.
The U.S. Semiconductor Market Since 2019
In 2019, the U.S. semiconductor market held just under 20 percent of the global share, finishing at 19 percent. The following year saw an increase as market shares climbed to 22 percent, driven by a surge in demand for electronic devices during the COVID-19 lockdowns. This figure remained steady in 2021, but the market experienced a significant jump of over 13.6 percent in 2022.
By 2023, the U.S. semiconductor market share had risen to 26 percent, a 4 percent increase from the previous year.
The U.S. semiconductor market is currently at 31.2 percent, representing a 20 percent rise from last year and over 60 percent from 2019. Total revenue is also projected to hit almost $84 billion by the year's end. Integrated circuits will contribute most of that revenue, with a projection of $73.8 billion.
Additionally, discrete semiconductors and sensors are expected to settle at $2.33 billion and $1.37 billion, respectively, while optoelectronics will increase its earnings to $6.08 billion, by the year's close.
Moreover, the U.S. semiconductor market is pegged for a 9.4 percent CAGR growth rate from 2024 to 2029, resulting in over $131 billion in revenue by 2029.
The U.S. Semiconductor Industry is Struggling with Domestic Manufacturing Shortfalls
While the U.S. semiconductor market boasts tremendous growth, the country holds only 12 percent of the global manufacturing capacity.
The federal government has worked to bridge the gap between chip production and sales, beginning with the CHIPS and Science Act in 2022. This act has attracted over $450 billion in private investments, resulting in more than 83 new semiconductor ecosystem projects and 56,000 jobs across 25 states. Despite this progress, the industry still needs to make significant strides to meet its tripled manufacturing goal by 2032.
Stocklytics said small and medium-sized semiconductor firms are still struggling to manage the financial burdens associated with manufacturing, and even larger companies like TSMC and Intel have had their plans delayed due to financial constraints. For instance, the construction of a TSMC plant in Arizona and an Intel plant in Ohio slowed down.
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