U.S. Semiconductor Industry Landscape: Ecosystem Reconstruction Amid Investment Boom

Since 2020, the U.S. semiconductor industry has seen an unprecedented investment surge, with over 130 major projects announced by ecosystem companies across 28 states, totaling private-sector investments exceeding $600 billion. These investments are projected to create and support more than 500,000 jobs, including 69,000 direct facility jobs, 122,000 construction jobs, and 335,000 indirect jobs through industrial linkages.

On the policy front, the U.S. Department of Commerce has awarded $32.5417 billion in direct grants and $5.85 billion in low-interest loans to 48 projects from 32 companies. Notably, in September 2024, the U.S. Department of Defense and Department of Commerce jointly provided up to $3 billion in grants to Intel for its "Secure Enclave" initiative, aimed at "supporting critical microelectronics manufacturing capabilities and ensuring a fully autonomous domestic supply chain for advanced semiconductors essential to national security."

Today, the U.S. semiconductor industry forms a complete ecosystem covering chip design, wafer fabrication, packaging/testing, equipment/materials, IP/EDA, and R&D institutions. Below is an analysis of its latest landscape across six core sectors.

1. Fabless: Engines of Innovation, Hubs of Design

Fabless companies focus on chip design without manufacturing, clustering in tech-dense regions like California and Massachusetts, serving as the innovation core of the industry chain.

• NVIDIA: Headquartered in Santa Clara, California, it is a global leader in GPUs, with a focus on AI, data centers, and autonomous driving. It operates an autonomous driving R&D center in Colorado, a deep learning lab in Massachusetts, and relies on TSMC and Samsung for manufacturing.
• AMD: Based in Santa Clara, California, it specializes in CPUs, GPUs, and APUs, competing with Intel and NVIDIA in servers, gaming, and PC markets. Its engineering teams are spread across Massachusetts, Florida, and Colorado, with manufacturing handled by TSMC.
• Marvell: Headquartered in Santa Clara, California, it focuses on custom chips and communication semiconductors for cloud computing, automotive, and 5G markets. Its AI accelerator business is rapidly expanding in North Carolina, while Idaho serves as a key hub post-acquisition of Inphi.
• MediaTek: A leading Taiwanese fabless firm with a strong U.S. R&D network, including AI and wireless communication chip centers in California, collaborative research with Purdue University in Indiana, and communication protocol development in Massachusetts. Manufacturing relies on TSMC.
• Cirrus Logic: Based in Austin, Texas, it specializes in audio processing chips, supplying brands like Apple. Its California team handles system-on-chip (SoC) design and acoustic algorithm development.
• Navitas: Headquartered in El Segundo, California, it is a pioneer in GaN power chips for fast charging, servers, and solar inverters, with manufacturing dependent on Asian foundries.
• Allegro Microsystems: Based in Worcester, Massachusetts, it provides sensors and analog power chips for automotive and industrial sectors, with manufacturing outsourced to Taiwanese and U.S. foundries.
• Ampere Computing: Founded by former Intel executives and based in Santa Clara, California, it focuses on Arm-based cloud server chips adopted by Google and Microsoft. It relies on TSMC for manufacturing.

2. IDM (Integrated Device Manufacturers): End-to-End Design + Manufacturing

IDMs control the entire process from chip design to wafer fabrication and packaging/testing, with extensive distribution across California, Texas, and Arizona, boasting deep technical accumulation.

• Intel: The largest U.S. IDM, offering processors, FPGAs, and network chips. It is advancing its "IDM 2.0" strategy to strengthen its foundry business (Intel Foundry Services, IFS). Key sites include advanced manufacturing facilities in Chandler, Arizona (Fab 42 and Fab 52/62), 3D packaging in Rio Rancho, New Mexico, and headquarters/R&D in Santa Clara, California.
• Micron Technology: A U.S. memory chip giant specializing in DRAM, NAND Flash, and storage systems. Headquartered in Boise, Idaho, it is investing $100 billion in a DRAM fab in Clay, New York, using 1-gamma process technology to boost domestic manufacturing.
• Texas Instruments (TI): A leader in analog and embedded processing chips with a highly integrated IDM model. Based in Dallas, Texas, it operates core manufacturing and packaging facilities there and is expanding its 12-inch wafer fab (RFAB2) in Chandler, Arizona, while maintaining older chip production in South Portland, Maine.
• Wolfspeed (formerly Cree): A global leader in silicon carbide (SiC) and gallium nitride (GaN) power devices. Headquartered in Durham, North Carolina, it is building the world’s largest SiC manufacturing hub in Marcy, New York, to serve electric vehicles and high-voltage industrial applications.

3. Foundries: Manufacturing Foundations, Supporting Global Design

U.S. foundries are fewer in number but expanding rapidly under the CHIPS Act, focusing on advanced processes and domestic supply.

• TSMC: The world’s largest pure-play foundry, investing nearly $40 billion in two advanced fabs in Phoenix, Arizona. The first 12-inch fab (Fab 21) using 5nm process broke ground in 2020, with mass production expected in 2025; the second will adopt 2nm technology. This marks TSMC’s first deployment of cutting-edge processes in the U.S.
• GlobalFoundries: The largest U.S.-based foundry, spun off from AMD’s manufacturing division. Its main fab (Fab 8) in Malta, New York, focuses on mature nodes (12nm, 22nm, 45nm) and serves IDM clients and U.S. government needs. It has received billions in CHIPS Act subsidies to expand New York facilities and enhance domestic manufacturing of defense-related chips.
• Intel Foundry Services (IFS): Intel’s foundry arm aiming to become a leading "Systems Foundry." With extensive U.S. manufacturing footprint—including advanced fabs in Arizona (Fab 42 and Fab 52/62) and 3D packaging in New Mexico—it serves high-performance computing, AI, defense, and aerospace clients, including the U.S. Department of Defense, Microsoft, and AWS.

4. OSAT (Outsourced Semiconductor Assembly and Test): Critical Link Connecting Frontend and Backend

U.S. OSATs are limited in number but expanding in advanced packaging (Chiplet, 3D packaging) to strengthen backend capabilities.

• Amkor Technology: A global leading OSAT headquartered in Tempe, Arizona, specializing in 2.5D/3D packaging and wafer-level packaging (WLP). It is building an advanced packaging and testing facility in Peoria, Arizona, as a key partner to TSMC’s Phoenix fab.
• Integra Technologies: Focused on military-grade and high-reliability packaging, based in Wichita, Kansas. It serves the U.S. Department of Defense and NASA, with plans to expand via CHIPS Act funding, focusing on high-density interconnects and Chiplet integration.

5. Equipment & Materials Suppliers: Drivers Behind Manufacturing Processes

The U.S. leads in semiconductor equipment and materials, dominating critical links like lithography, etching, deposition, and chemicals.

(1) Equipment Companies

• Applied Materials: The world’s largest semiconductor equipment manufacturer, headquartered in Santa Clara, California. It covers thin-film deposition (CVD, PVD), ion implantation, etching, CMP, and metrology, with a multi-billion-dollar advanced R&D center in New York.
• Lam Research: A global leader in etching and deposition equipment, based in Fremont, California. It focuses on EUV-related etching technologies and equipment for high-aspect-ratio 3D NAND processes.
• KLA Corporation: A leader in metrology and defect inspection, headquartered in Milpitas, California. Its Ann Arbor, Michigan, campus develops AI-driven defect detection and advanced packaging inspection technologies.
• ASML: A Dutch company with significant U.S. presence, including optical module manufacturing in Wilton, Connecticut, and software/system integration teams in San Jose, California, supporting North American clients with EUV lithography systems.

(2) Materials Companies

• Entegris: A leading supplier of high-purity chemicals and material delivery systems, based in Billerica, Massachusetts. It operates a new advanced chemicals plant in Minnesota and acquired CMC Materials in 2022 to expand polishing and deposition material capabilities.
• EMD Electronics: The U.S. electronics division of Germany’s Merck, with an advanced materials facility in Chandler, Arizona. It supplies lithography materials, etching precursors, and supports domestic fab needs.
• Corning Incorporated: A leader in specialty glass and ceramic materials, headquartered in Corning, New York. It contributes to EUV mask substrate development, enabling advanced lithography technologies.

6. IP & EDA Companies: Infrastructure for Chip Design

These companies provide EDA tools, IP cores, and collaborative platforms, essential for modern semiconductor design.

• Cadence Design Systems: A leading EDA and semiconductor IP provider, based in San Jose, California. Its toolchain covers SoC design, verification, low-power optimization, and Chiplet integration, with close collaboration with foundries.
• Synopsys: One of the world’s largest EDA and IP suppliers, headquartered in Mountain View, California. It focuses on advanced process design verification, AI-driven tools, and Chiplet integration, supporting chip innovation in AI, 5G, and automotive electronics.
• Arm: A UK-based company with key R&D centers in Massachusetts, California, and Arizona. It provides CPU and GPU architecture IP widely used in mobile devices, servers, and embedded systems, optimizing high-performance computing and low-power processor designs.

7. Universities & National Laboratories: Innovation Hubs and Talent Incubators

U.S. universities and national laboratories form the core of basic innovation and talent development, supporting industrial technological breakthroughs.

(1) University Clusters

• East Coast: MIT (nanoelectronics, quantum computing), Cornell University (nanomanufacturing), and Princeton University (semiconductor physics) lead in foundational research.
• West Coast: Stanford University (heart of Silicon Valley innovation), UC Berkeley (MEMS technology), and UC Santa Barbara (power semiconductors) drive industry-academia collaboration.
• Midwest & South: The University of Michigan (automotive electronics), The University of Texas at Austin (microelectronics), and Georgia Tech (RF technology) support regional semiconductor clusters.

(2) National Laboratories

• Lawrence Berkeley National Laboratory: Pioneers advanced materials and nanoscience research, laying groundwork for next-gen electronic devices.
• Sandia National Laboratories: Specializes in radiation-hardened semiconductors and extreme-environment electronics, serving national security needs.
• Oak Ridge National Laboratory: Leads in wide-bandgap semiconductors (SiC, GaN) for electric vehicles and renewable energy systems.

Conclusion: Strengths and Structural Challenges

The U.S. semiconductor industry exhibits distinct geographic specialization: the West Coast dominates high-value design and EDA; the Midwest and East Coast host manufacturing reshoring; and equipment/materials companies provide nationwide foundational support.

However, structural gaps remain: heavy reliance on Asian supply chains for wafer fabrication and packaging/testing (e.g., TSMC in Taiwan, Samsung in South Korea, and Chinese mainland OSATs); gaps in advanced process manufacturing capabilities compared to Asian leaders; and challenges in talent  pool, industrial chain collaboration, and integration with global manufacturing ecosystems.

Amid intensifying global semiconductor competition, the U.S. must continue strengthening manufacturing capabilities and ecosystem synergy to consolidate its global competitiveness.