CHIPS construction

The CHIPS Act enacted by the US in August 2022 is contributing to record high spending on the construction of manufacturing sites for semiconductors. Between 2018 and 2020, private construction spending on computer, electronic and electrical manufacturing, which contains semiconductor manufacturing, averaged USD 8 billion per year. By the end of 2021, when companies were anticipating the CHIPS Act, spending had more than doubled to USD 21 billion and the most recent data shows the annual rate of spending has risen to a staggering USD 130 billion. The Semiconductor Industry Association reports that over 50 new semiconductor ecosystems projects have been announced. Some of these projects can be massive; one company is investing about USD 40 billion and another USD 30 billion. It will be interesting to see how much semiconductor production will move from Asia to the US in a few years once construction is completed.

Source: US Census Bureau, November 2024.