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semiconductor chip

Meeting the Growing Demand for American Semiconductor Facilities

With the rise of AI, a new administration and growing demand for American-made products, the semiconductor industry is experiencing a boom.
By Darin Hart
January 22, 2025
Topics
Markets

The semiconductor industry is experiencing rapid growth in the United States, with the increasing demand for advanced electronics and the rise of artificial intelligence propelling the expansion.

Stemming from the pandemic and rising to prominence as part of the new presidential administration, the need to manufacture within the U.S. has become even more critical.

The continued growth of the semiconductor industry within the U.S. will support the production of supply-chain components for critical industries including automotive, healthcare, artificial intelligence and aviation for decades to come.

Building these facilities can be challenging given their immense size and complexity. Semiconductors and the advanced machinery used to manufacture them must be housed in carefully controlled environments that require intricate designs and precise construction processes. As the demand for semiconductor manufacturing plants grows, the construction industry must be prepared to meet this moment.

ACCELERATING DOMESTIC SEMICONDUCTOR CAPABILITIES

Since the CHIPS Act was signed in 2022, U.S.-based investments in the semiconductor manufacturing space have skyrocketed, positioning the country to quickly become home to the world’s cutting-edge logic, memory and advanced packaging providers and facilities. The Department of Commerce predicts the U.S. will produce nearly 30% of the global supply of leading-edge chips by 2032, a 200% increase from current production levels. According to the Semiconductor Industry Association’s annual report, as of August 2024, there were 90 new manufacturing projects across 28 states, totaling nearly $450 billion in announced investments in the U.S. These investments will create thousands of jobs and support the U.S. economy through the expansion of this rapidly growing and lucrative industry.

America is the birthplace of the semiconductor and once produced nearly 40% of the world's chips; today, that figure has shrunk to just 11% of the world’s supply. The U.S. did not maintain the resources or facilities to manufacture the world’s most advanced chips, and subsequently fell behind countries such as Taiwan and South Korea. The pandemic’s stress on the supply chain caused a shortage of semiconductors that were felt by the everyday consumer, spurring the need for the U.S. to increase its onshore manufacturing investments. The CHIPS Act led to the investment of nearly $53 billion into expanding the American-based semiconductor industry across all sectors, including manufacturing, workforce, research and development.

NEW YORK, NEW YORK

New York is a prime example of the impact that government support can have on pushing the boundaries of innovation and ultimately creating state-of-the-art semiconductor facilities.

With support from the CHIPS Act, New York Governor Kathy Hochul secured one of the first national semiconductor research and development center facilities in the nation, located in Albany. With fabrication shops also being constructed in Arizona, North Carolina, Oregon, Texas, Ohio and New Mexico, the federal government is supporting the rapid development of a new semiconductor infrastructure that will be the bedrock for technology development moving forward.

With the entry of the new presidential administration, a potential rise in tariffs and export restrictions would continue to reinforce the need for the U.S. to shore up its semiconductor manufacturing sector and prevent supply-chain challenges and added expenses to an already cost-intensive process.

HOW TO LEVERAGE DATA AND ADVANCED TECHNOLOGIES TO TRANSFORM SEMICONDUCTOR FACILITY CONSTRUCTION

To meet the growing need for semiconductor manufacturing, the construction industry must adopt advanced construction technologies to ensure maximum construction efficiencies and productivity. Contractors must leverage data and innovative technologies to closely manage and quickly deliver semiconductor projects for clients. The implementation of virtual modeling technologies allows teams to construct buildings virtually before they are in the field to ensure a more seamless, predictable construction process that saves time and money for clients.

Another invaluable tool is the use of artificial intelligence and predictive analytics that allow contractors to leverage clean data from past projects to make better, earlier decisions and anticipate project challenges. For example, Suffolk utilizes robotics, including robot dogs from Boston Dynamics and robots from tech companies like Rugged Robotics and Canvas, that quickly, accurately and efficiently perform jobsite duties traditionally performed by human workers who can now concentrate their efforts on more strategic roles.

Another helpful tool for contractors is virtual design and construction, which creates a detailed digital facility model that enables construction teams to simulate processes, optimize workflows and anticipate challenges before they arise. Investments in automation and robotics enhance precision while reducing labor costs and minimizing human errors.

When constructing these highly technical facilities, it is important to create and utilize an ecosystem of advanced technologies. The mixed use of these technologies helps remove siloes that often cause inefficiencies in the industry, all the way from the preconstruction process throughout the build and to the finalized product.

THE PATH FORWARD

Currently, the United States only produces a fraction of worldwide semiconductor volume. There is a growing demand for stateside manufacturing as fabrication shops and research hubs are planned for construction throughout the country. These complex facilities will require sophisticated design and construction processes that could lead to overruns, delays and budget restraints unless construction companies embrace technology and data to become more efficient. The construction industry must rise to the challenge if America is to position itself as the new global leader in semiconductor manufacturing.

SEE ALSO:

by Darin Hart
Darin Hart is the senior vice president of Advanced Technology at Suffolk.

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