The U.S. Semiconductor industry has nearly half the global market share and has displayed steady annual growth. Since the late 1990s, the U.S. semiconductor industry has been the global sales market share leader with almost 50 percent annual global market share. In addition, U.S. semiconductor firms maintain a leading or highly competitive position in R&D, design, and manufacturing process technology.
Global sales market share leadership also allows the U.S. semiconductor industry to benefit from a virtuous cycle of innovation; sales leadership enables the U.S. industry to invest more into R&D which in turns helps ensure continued U.S. sales leadership. As long as the U.S. semiconductor industry maintains global market share leadership, it will continue to benefit from this virtuous cycle of innovation.
U.S.-based semiconductor companies are a market leader by business model and subproduct, but for some business model subsegments, the U.S. industry lags its Asian-based competitors. The U.S. semiconductor industry maintains market share leadership in sales of logic and analog semiconductors. However, for memory and discrete semiconductors, other countries’ industries lead.
Similarly, in terms of business model, the U.S. leads in some areas but not all.
For example, Asia continues to dominate the outsourced aspects of semiconductor production. Nearly 80 percent of semiconductor foundries and assembly/test operations are concentrated in Asia. While global supply chains have driven value and efficiency gains for the industry, they also have highlighted the need for the United States to consider strategic investments in this space.
U.S. Technology Competitiveness: The U.S. semiconductor industry is the undisputed technology leader in advanced semiconductor chip design. This includes the platform technologies needed for AI, with dominant market shares in microprocessors, graphics chips, and programmable logic processors. Today’s most advanced ICs for leading-edge logic applications use 10 nanometer (nm) technology and pack over 20 billion transistors on chips about the size of a quarter. The U.S. is also well positioned in critical designs of 5G-related semiconductors, with leading positions in chips that enable wireless communications, network management, and data storage. Finally, U.S. firms are leading efforts to develop new chips for autonomous cars, including advanced image sensors, data processors, and on-board radar.
U.S. semiconductor industry R&D expenditures are consistently high, reflecting the inherent link between U.S. market share leadership and continued innovation: U.S. semiconductor industry R&D expenditures grew at a compound annual growth rate of approximately 6.6 percent from 1999 to 2019. R&D expenditures by U.S. semiconductor firms tend to be consistently high, regardless of cycles in annual sales, which reflects the importance of investing in R&D to semiconductor production. In 2019, total U.S. semiconductor industry investment in R&D totaled $39.8 billion.
U.S. semiconductor manufacturers maintain more of their manufacturing base in the United States than in any other country: In 2019, about 44 percent of U.S.- headquartered firms’ front-end semiconductor wafer capacity was located in the United States. Other leading locations for U.S.-headquartered front-end semiconductor wafer fab capacity were Singapore, Taiwan, Europe, and Japan. It is notable that China has attracted less U.S. investment in front-end fabrication than the other major markets. Unfortunately, the average rate of chip manufacturing output has grown five times faster overseas than it has in the United States over the last decade. This is largely due to robust incentive programs nations have put in place to attract semiconductor manufacturing.
U.S. Semiconductor Innovation Policy Landscape
To ensure continued U.S. leadership in the global semiconductor industry, the U.S. must adopt an ambitious competitiveness and innovation agenda.
- Triple U.S. investments in semiconductor-specific research across federal scientific agencies from approximately $1.5 billion to $5 billion annually to advance new materials, designs, and architectures that will exponentially increase chip performance.
- Double U.S. research investments in semiconductor-related fields such as materials science, computer science, engineering, and applied mathematics across federal scientific agencies to spur leap-ahead innovations in semiconductor technology that will drive key technologies of the future.
- Establish a new manufacturing grant program to spur construction of new onshore advanced semiconductor manufacturing facilities in the U.S., including leading-edge logic foundries, advanced memory, and analog fabs to supply defense, critical infrastructure, and broader essential commercial needs.
- Provide tax incentives for semiconductor manufacturing, such as a refundable investment tax credit for the purchase of new semiconductor manufacturing equipment.
- Reform the high-skilled immigration system so qualified STEM graduates from U.S. colleges and universities, as well as STEM graduates from around the world, can work, innovate, and contribute to U.S. leadership in the semiconductor industry and boost our economy.
- Increase U.S. investments in STEM education by 50 percent and implement a national STEM education initiative to double the number of American STEM graduates by 2029.
Trade and IP:
- Approve and modernize free trade agreements, including the United StatesMexico-Canada Agreement, that remove market barriers, protect IP, and enable fair competition.
- Increase resources for law enforcement and intelligence agencies to prevent and prosecute semiconductor intellectual property theft, including the misappropriation of trade secrets.
Top 10 largest semiconductor companies in the USA:
Intel Corporation is one of the finest computer chip companies, which offers platform products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package.
Products: Intel mainly has these products – Processors, Server products, Intel NUC, Wireless, Ethernet Products, Memory and Storage, Chipsets and Graphics.
Applications: Cloud Computing, Gaming, Content Creation, High-Performance Computing and Artificial Intelligence, Trust Security and Privacy, Efficient Design & Programming, Connectivity & Communications and Memory & Storage.
Innovation/Technology: Intel owns over 40,000 patents worldwide. Intel is working on emerging innovations across computing and communications like 5G Networks, Autonomous Driving, Blockchain, Sensemaking, Anticipatory Computing, Neuromorphic Computing and Quantum Computing.
Global Market: The Company is headquartered in California, USA, spinning across 11 countries with more than 110 thousand employees.
Revenue: In FY 2020, the revenue set an all-time Intel record of $77.9 billion.
Nvidia Corporation is a technology company that is primarily known for designing and manufacturing graphical processing units (GPUs) for the gaming industry.
Products: Nvidia has products like graphic cards, laptops, G-sync monitors and GEFORCE NOW CLOUD GAMING.
Applications: The Company developed GPU-based deep learning to use Artificial Intelligence to approach problems like Cancer Detection, Weather Prediction, Self-Driving Vehicles, Competitive Gaming, Professional Visualization, Deep Learning, Accelerated Analytics and Cryptocurrency Mining.
Innovation/Technologies: Nvidia has 7,300 patent assets. It has successfully developed technologies like Enterprise & Developer (CUDA, IndeX, Iray, MDL), Gaming (GameWorks, G-syncBattery Boost), Architectures (Ampere, Volta, Turing) and Industry Technologies (AI computing, Deep Learning, ML). It is researching 3D Deep Learning, Applied Research, AI and ML, Computer graphics, Esports, Medical, Networking and more.
Global Market: NVIDIA is headquartered in Santa Clara, USA, and has 57 office locations across 28 countries with 9,100 employees.
Revenue: For FY 2020, revenue was $10.92 billion.
Texas Instruments Incorporated
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems.
Products: TI’s main products are Amplifiers, Audio, Clocks & timing, Data converters, Die & wafer services, DLP products, Interface, Isolation, Logic, Microcontrollers (MCUs) & Processors, Motor drivers, Power management, RF & microwave, Sensors, Space & high reliability, Switches & multiplexers, Wireless connectivity and Calculators & Education Technology.
Technology/Innovation: The Company holds 45,000 patents worldwide. They are working on creating new solutions for wireless battery management systems for EVs along with Cobots and Machine Learning.
Application: They have applications in areas like Industrial (Aerospace & Defence, Grid Infrastructure, Medical, Lighting and more), Automotive, Communications equipment, Enterprise systems, Personal Electronics, Security and IoT.
Global Market: TI has 14 manufacturing sites worldwide, with 10 wafer fabs, seven assembly and test factories, and multiple bumps and probe facilities with 30,000 employees. The company is headquartered in Dallas, USA.
Revenue: Texas Instruments revenue for the FY 2020 was $14.461 billion.
Microchip Technology is a leading provider of smart, connected and secure embedded control solutions across the industrial, automotive, consumer, aerospace and defence, communications and computing markets.
Products: Microcontrollers and Microprocessors, Analog, Aerospace and Defense, Amplifiers and Linear, Clock and Timing, Data Converters, Embedded Controllers and Super I/O, Foundry Services, FPGAs and PLDs, High-Speed Networking and Video, Interface and Connectivity, LED Drivers and Backlighting, Memory, Power Management, Power over Ethernet, Security ICs, Sensors, Smart Energy/Metering, Storage, Synchronization and Timing Systems, Touch and Gesture and Wireless Connectivity.
Applications: They are used in areas like Medical, Aerospace & Defence, Audio & Speech, Automotive, Battery Management, CAN, Displays, Computing, Ethernet, IoT, Lighting, Metering, USB, Wireless & Networking, Home Appliances and more.
Technology/Innovation: They have been working on high-side current sense amplifiers for automotive applications, First Fully Integrated Solution for Vehicle Ethernet Audio Video Bridging (AVB), Ethernet Switches, Machine Learning and Hyper-scale Computing Infrastructure and Tri-mode storage controllers.
Global Market: Microchip is headquartered in Chandler, USA, and has 67 office locations across 28 countries with over 18,000 employees.
Revenue: Microchip revenue was $5.3 billion for the FY 2020.
Analog Devices: ADI is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world.
Products: Analog Devices provide a broad portfolio with products like Amplifiers, Analog Functions, A/D Converters (ADC), Audio & Video Products, Clock & Timing, D/A Converters (DAC), High-Speed Logic & Data Path Management, Industrial Ethernet, Interface & Isolation, Power Monitor, Control, & Protection, Optical Communications & Sensing, Power Management, Processors & Microcontrollers, RF & Microwave, Sensors & MEMS and Switches & Multiplexers.
Applications: ADI is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, and software technologies into solutions that help drive advancements in digitized factories, mobility, and digital healthcare, combat climate change, and reliably connect humans and the world.
Technology/Innovation: ADI manufactures over 75,000 analog and mixed signal semiconductor products.
Global Market: ADI is headquartered in Wilmington, MA, and has approximately 25,000 people globally working alongside 125,000 global customers,
Revenue: ADI’s FY22 Revenue was more than $12 billion.
Micron Technology is a producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives.
Products: They provide products in three categories – Memory (DRAM, NAND, NOR flash), Storage (Memory cards & SSDs) and Advanced solutions (3D xPoint, Advanced computing, Authenta Security and Hetro Memory Storage Engine).
Applications: 5G, Automotive, Client, Consumer, Industrial IoT, Mobile, Networking and Server.
Technology/Innovation: Micron has contributed nearly 44,000 patents throughout its history. It has created the World’s Most Advanced DRAM Process Technology, Micron’s X100 NVMe SSD – The fastest NoSQL databases for AeroSpike performance.
Global Market: Micron Technology is headquartered in Boise, USA, and has 43 office locations across 17 countries with 34,000 employees.
Revenue: The Revenue was $21.44 billion in FY 2020.
Xilinx Inc. is a technology company that is primarily a supplier of programmable logic devices. The company invented the field-programmable gate array. It is the semiconductor company that created the first fabless manufacturing model.
Products: Devices (ACAPs, FPGAs & 3D ICs, SoCs, MPSoCs, & RFSoCs), Evaluation Boards & Kits (Evaluation Boards, SoMs), Accelerators (Data Center Accelerator Cards, Computational Storage, SmartNIC and Telco), Ethernet Adapters (8000 Series Ethernet, X2 Series Ethernet), Software Development Tools (Vitis Software Platform, Vitis AI), Hardware Development, Embedded Development, Core Technologies (3D ICs, Configuration Solutions, Connectivity, Design Security, DSP, Ethernet, ML, Memory, RF Sampling) and Accelerated Applications.
Applications: Aerospace & Defense, Automotive, Broadcast & Pro A/V, Consumer Electronics, Data Center, Emulation & Prototyping, Industrial, Healthcare / Medical, Test & Measurement, Wired & Wireless Communications.
Technology/Innovation: It has 4400 patents primarily focusing on high-end Field-Programmable Gate Arrays (FPGA). It is currently researching High-Level Design Flows, Heterogeneous Multi-core Architectures, Advanced Applications in Network Processing, Signal Processing, and Embedded Systems and FPGAs.
Global Market: Xilinx is headquartered in San Jose, USA, and has 12 office locations across 8 countries with more than 5000 employees.
Revenue: The revenue was $3.16 billion for FY 2020.
AMD, Advanced Micro Devices
AMD (Advanced Micro Devices) is a global semiconductors company that develops high-performance computing and visualization products to solve some of the world’s toughest and most interesting challenges.
Products: Desktop & Mobile Processors, Business System Processors, Server Processors, Graphics Cards, Pro Graphics, Server Accelerators, Embedded Graphics, Embedded Graphics and Embedded Partner Catalog.
Applications: AMD is focused on instinctive and immersive computing and how that technology can unleash the power of machine learning and other high-performance computing applications to tackle important global challenges including – Medical, Education, Manufacturing, Scientific Research and Security.
Technology/Innovation: It has 8000 issued patents across the globe. It is researching on areas like high-Performance Computing (HPC), Advanced Memory Technology, Low Power and Machine Intelligence.
Global Market: AMD is headquartered in Santa Clara, USA, and has 38 office locations across 23 countries with over 11,400 employees across the globe.
Revenue: For FY 2020, the company reported revenue of $9.76 billion.
ON Semiconductor is a leading supplier of semiconductor-based solutions, offering a comprehensive portfolio of energy-efficient connectivity, sensing, power management, analog, logic, timing, discrete, and custom devices.
Products: Memory, Audio/Video ASSP, Interfaces, Standard Logic, Microcontrollers, Discretes & Drivers Power Management, Timing & Signal Conditioning, Isolation & Protection Devices, Amplifiers & Comparators, Sensors, Wide Bandgap Power Modules, Connectivity, Optoelectronics, Custom Foundry Services, SoC, SiP, & Custom Products.
Applications: It is used in Aerospace & Defence, Automotive, Industrial & Cloud Power, IoT, Medical and Personal Electronics.
Technology/Innovation: ON Semiconductor is working on Automotive, Internet of Things (IoT), Innovation and Industrial & Cloud Power.
Global Market: It is headquartered in Arizona, USA, and has 74 office locations across 24 countries with 34,000 employees.
Revenue: ON Semiconductor’s revenue was $5.3 Billion for FY 2020.
Qualcomm is a semiconductor company engaged in the development and commercialization of wireless industry technologies.
Products: 5G, Artificial Intelligence, Bluetooth, Modem-RF Systems, Processors and Wi-Fi.
Applications: Audio, Automotive, Cameras, Industrial & Commercial, Mobile Computing, Networking, Smartphones, Smart Cities, Smart Homes, Wearables and XR/VR/AR.
Technology/Innovation: Qualcomm holds a staggering 140,000 patents and patent applications for 5G technologies. It is researching on 5G & Wireless Technology, Artificial Intelligence, Extended Reality (XR) and University Relations.
Global Market: Qualcomm is headquartered in San Diego, USA, and has 130 office locations across 30 countries with more than 39,000 employees.
Revenue: In FY 2020, Qualcomm generated about USD 23.5 billion in revenue.