After the global semiconductor shortage of 2021 and 2022 highlighted the vulnerability of industrial supply chains, multinational companies began scrambling to secure much-needed chip supply. Policymakers around the world have been vying ever since to attract more semiconductor investments to in an effort to de-risk high-value supply chains.
In response, the United States passed the CHIPS and Science Act in 2022, which allocates more than $52.7 billion to incentivize domestic semiconductor investment, manufacturing, and research and development. The European Union’s equivalent is in the final legislative stages and will soon be signed into law, mobilizing €43 billion in public and private investment with the objective of doubling the EU’s global market share in semiconductors, from 10% now to at least 20% by 2030.
In Asia, South Korea is offering tax benefits and subsidies to local chipmakers to encourage them to invest in research and development by 2030. The government of Japan ramped up efforts to revive its semiconductor industry, including shouldering a portion of semiconductor capital investments in exchange for 10 years of guaranteed production in the country.
These new semiconductor manufacturing investments will cause ripple effects through global supply chains as key sub-tier suppliers of materials, chemicals, and equipment set up plants nearer to their operations, further re-shoring domestic manufacturing processes. In the following charts, Everstream Analytics tracks these shifting global investments into existing or new semiconductor facilities.
Note: Everstream's dataset is based on open-source information and announcements published in the media and company press releases. Figures are therefore non-exhaustive and subject to change as estimated costs and received subsidies are revised, and operating timelines change.