SEMI: U.S. Advanced Chip Capacity Could Reach 40%
According to Joe Stockunas, president of SEMI Americas, the United States could account for 40% of global advanced semiconductor manufacturing capacity by the late 2030s as wafer fabrication projects continue to expand. Speaking to Taiwan's Central News Agency during SEMICON West, Stockunas said the potential addition of new fabs in Texas could further strengthen the country's position in advanced chip manufacturing.
TSMC Considers Expanding Semiconductor Manufacturing in Texas
TSMC Chairman and CEO C.C. Wei confirmed during the company's third-quarter earnings briefing on October 15 that TSMC is actively evaluating further expansion in the United States, including locations outside Arizona. Texas is one of the leading candidates, and the company has recently sent a team to assess potential sites.
Wei said major customers are requesting additional U.S. manufacturing capacity, while government support is also encouraging further investment. TSMC is still discussing potential cooperation with Terafab, a planned semiconductor manufacturing facility backed by Tesla and SpaceX, but Wei emphasized that any fab involved in the discussions must be operated by TSMC.
Texas has already attracted major semiconductor companies, including Samsung Electronics and Texas Instruments. Stockunas said the potential addition of TSMC would further strengthen the state's semiconductor manufacturing ecosystem. Terafab representatives also attended SEMICON West, reflecting industry interest in the project's progress.
Global 12-Inch Wafer Fab Equipment Spending to Reach $227 Billion
SEMI's latest 300mm Fab Outlook, released during SEMICON West, forecasts that global spending on 12-inch wafer fab equipment will reach $227 billion in 2029.
Equipment investment in the Americas, primarily reflecting the U.S. market, is projected to more than double from $18.1 billion in 2026 to $40.6 billion in 2029. Stockunas said additional TSMC investment would further increase the U.S. share of global 12-inch wafer fab equipment spending.
The report also highlights an acceleration in new fab construction and production capacity. The United States is expected to begin construction on three new 12-inch wafer fabs or production lines in 2026, rising to four in 2027. Globally, 13 new fabs are expected to enter operation or begin producing their first wafers in 2026, increasing to 23 in 2027.
Workforce and Supply Chain Readiness Remain Key Challenges
Despite the expansion outlook, workforce availability will be a critical consideration for Texas. Stockunas noted that the semiconductor industry must ensure sufficient skilled personnel are available for both fab construction and ongoing operations.
Supply chain coordination will also play an important role. Arizona and Texas have well-developed infrastructure that makes them attractive locations for semiconductor manufacturing. SEMI is advocating for broader eligibility for investment tax credits to include supply chain investments that currently do not qualify, encouraging more companies to establish operations near major manufacturing sites.
Stockunas emphasized that semiconductor production will continue to rely on a globally distributed supply chain, while localized collaboration will remain essential to strengthening supply chain resilience. He also praised TSMC for its world-class capabilities in demand forecasting, supplier communication and coordination.
U.S. Semiconductor Investment Continues to Grow
According to SEMI, total announced and planned semiconductor-related investments in the United States have exceeded $800 billion, with more than $200 billion concentrated in the Phoenix area.
Major investment commitments include TSMC's planned $265 billion investment in Arizona, Intel's more than $100 billion in U.S. investments, and Micron Technology's plan to invest more than $250 billion in the United States through 2035.
Industry analysts believe government incentives, including those under the CHIPS and Science Act, and rising demand for AI chips are reshaping the global semiconductor manufacturing landscape. The United States is increasingly moving from investment announcements toward the construction and deployment of actual production capacity.
As new fabs and equipment investments advance, the expansion of U.S. semiconductor manufacturing could create additional demand for wafer fabrication equipment, process-control systems, industrial automation, power management components and other technologies essential to semiconductor production.
