Interesting to read this McKinsey article on the challenges the U.S. semiconductor industry is facing as well as the imbalance of semiconductor supply and demand, domestically and globally. The combined supply chain complexity and talent shortage underscores the importance of strategic negotiations and contracting as well as creative financing.
The semiconductor industry is booming, with expected average annual growth of 6 to 8 percent through 2030 and yearly revenues forecasted to reach $1 trillion. The industry will have to double semiconductor production to keep pace with future demand. The value of US-based semiconductor projects that are under way, announced or under consideration total $223 billion to over $260 billion through 2030. The current economic outlook is prompting several semiconductor companies to slow their capital deployment, however. The potential solution for companies that want to continue building US fabs amid all this uncertainty? A mix of creative financing, more thoughtful design, greater prefabrication, and better strategies for negotiations, scheduling, and cost control.'