State of Global Semiconductor Industry

Summary

The $530+ billion semiconductor industry boasts more than 2 million direct employees worldwide, and the sector is in dire need of an additional 1 million skilled workers by the end of this decade. To meet the countrys critical requirements, the US would need no less than 20 additional fabs by 2025. Developments like semiconductor export controls, geopolitical struggles, financial sanctions, and countersanctions are reshaping the supply-side of the semiconductor sector, and these should be of interest to procurement professionals. This white paper looks at the state of global semiconductor industry from a practical procurement perspective and covers the following key aspects:

• • Impact of new semiconductor export controls (e.g., FDPR)

• • US-China export restrictions and talent exodus

• • Workforce challenges in the semiconductor sector

• • Semiconductor innovations and limitations (e.g., logic chips, DRAM)

• • Changing contours of the global semiconductor food chain