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16 Jan 2023

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SIA Report Sees Threats to US Leadership in Semiconductor Design

WASHINGTON, DC (IDCA) - “Continued U.S. design leadership – and the innovation multiplier effect that benefits industries across the economy – is not assured,” writes the Semiconductor Industry Association (SIA), the Silicon Valley-based trade group, in its recently released 2022 report. “In addition to rising design costs, a shortage of skilled talent, and increasing strains on access to global markets, global competitors are seeking to challenge U.S. leadership.”

The report outlines a scenario in which US marketshare in semiconductor design drops 10 full percentage points, from 46% in 2020 to 36% in 2030. China is forecast to be the main beneficiary behind this trend, with market share rising from 9% to 23% in the 10-year period – a compound annual growth rate of almost 10%.

In this forecast, South Korea is also forecast to see a significant gain (see accompanying chart), Taiwan and Europe are expected to remain stable, while Japan is forecast to lose more than half of its market share in this overall dynamic.

The SIA recommends that the US government provides a 25% investment tax credit for advanced semiconductor design, “comparable to the manufacturing credit included in the government's 2022 CHIPS and Science Act.

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