The cyclical decline in growth and the impact of the chip law and restrictions on China will be a continuous challenge for the industry, the union says
The Semiconductor Industry Association (SIA) published a few days ago its annual state of the industry report. The report highlights the current challenges facing the semiconductor industry, as well as opportunities for continued growth and innovation.
In 2022, as the importance of chips to the global economy continues to grow, the semiconductor industry has worked tirelessly to accelerate the pace of innovation and increase production. In fact, the global industry is set to sell more semiconductors this year than any year in history, a feat that has helped ease the ongoing global shortage of chips.
“This year also saw the passing of bipartisan, ground-breaking legislation, the Chips and Science Act, which will significantly strengthen local semiconductor production and innovation in the years to come. The Chip Act includes $52 billion in incentives for chip manufacturing and research investments, as well as investment tax credits for semiconductor manufacturing and semiconductor equipment manufacturing. These investments will help reinvigorate US leadership in chip technology and strengthen America’s economy, national security and supply chains.” Robert Casanova, Director of Statistics and Economic Policy at SIA, points out.
“Despite a historic year in 2022, the semiconductor industry continues to face significant challenges. Global semiconductor sales growth slowed significantly in the second half of the year, for example, and the notoriously cyclical market is not expected to recover until the second half of 2023. In addition, tensions between the US and China continue to have implications for the global supply chain, leading to the spread of government controls About selling chips to China, the largest semiconductor market in the world. And other significant policy challenges remain, including the need to enact policies that will maintain U.S. leadership in semiconductor design, reform America’s immigration and STEM-skilled education systems, and promote free trade and access to global markets.”
“Overall, 2022 has been a very successful and consequential year for the industry, as semiconductors are expected to have a greater positive impact on the world than ever before. With effective cooperation between the government and industry in the coming years, the industry can continue to grow, innovate and realize an even brighter future built on semiconductors.” Casanova concludes.