Today, multiple regions around the world are seeking to build resilient semiconductor supply chains
As of 2024, the United States has announced investments of over $450 billion in semiconductor manufacturing capacity. However, the materials and chemicals required for producing these chips are equally crucial. Front-end semiconductor manufacturing involves a steady supply of over 100 chemicals and materials, and any disruptions can significantly impact the production process. Our analysis indicates that by 2030, the US may face a supply gap for many materials, with about 60% of supply chains relying on imports.
The importance of a robust semiconductor chemical supply
Many consumer and industrial technologies depend on semiconductors, with the US semiconductor market projected to exceed $140 billion by 2030. The demand for associated chemicals and materials is expected to triple by 2030, emphasizing the need for a reliable supply chain.
The supply gap challenge: Seven semiconductor chemical archetypes
Our analysis reveals that approximately 60% of materials and chemicals required for semiconductor production in the US do not have sufficient domestic supply. A total investment of $9 billion in one-time capital expenditures is estimated to bridge this gap by 2030. We have identified seven archetypes categorizing the challenges faced by different materials in scaling US semiconductor production.
Where do we go from here?
Closing the chemicals supply gap is crucial for establishing a reliable source of semiconductors in the US. Companies can take steps such as entering trade agreements, securing access to critical raw materials, and bridging investment and operating cost gaps for domestic production. Fabs should assess resilience risks and develop a more resilient base of supply options. Collaboration with technology owners for securing IP and building capacity is essential in this journey towards self-sufficiency.
FAQ
Q: What are the key challenges in the semiconductor chemical supply chain?
A: The main challenges include insufficient domestic supply, economic constraints, restricted materials due to regulations, and limited access to critical raw materials and technologies.
Q: How can companies address these challenges?
A: Companies can enter trade agreements, secure raw material sources, bridge cost gaps, and collaborate with technology owners to enhance supply chain resilience.
Conclusion
The analysis of the semiconductor chemical supply chain in the US highlights the need for strategic investments to bridge the materials gap and ensure a robust supply chain for semiconductor production. By addressing the challenges across different archetypes and taking proactive measures, the US can strengthen its position in semiconductor manufacturing and enhance resilience in the face of global supply chain disruptions.
