This foundational technology is the hidden force driving modern innovation – and a testament to the wonder of advanced semiconductor research, design, and manufacturing.
In 2025, semiconductors are not just components in consumer devices – they are the essential building blocks for the technologies shaping America’s future. From artificial intelligence and quantum computing to advanced communications networks and defense systems, chips are at the heart of the competition for global technology leadership in the 21st century.
American engineers invented semiconductors 65 years ago, and the U.S. semiconductor industry remains the global leader, commanding just over 50% of global chip revenues. But as competitors from around the world have sought to challenge U.S. leadership, America’s share of global chip manufacturing capacity was declining sharply – from 37% in 1990 to just 10% by 2022. If this trend were to continue, the U.S. semiconductor industry would risk falling back from the forefront of further advances in manufacturing processing technology, designs and architectures, and materials critical for developing the next generation of chips that will underpin the technologies of tomorrow.
Fortunately, landmark government incentives and research investments have helped to turn the tide, signaling a renewed national commitment to strengthening U.S. leadership in this critical sector. And in just a few years, we’ve seen a massive return on investment: Over 100 projects in 28 states have been announced, totaling over half-a-trillion dollars in private investment. These projects are expected to create and support more than 500,000 U.S. jobs and help triple U.S. chipmaking capacity by 2032.
Now more than ever, sound government policies are critical to our industry’s ability to grow and innovate. Decisions in Washington and around the world are reshaping the global semiconductor landscape. Continued U.S. leadership in chips will depend on advancing smart tax, research, and workforce policies here at home, strengthening U.S. supply chains, remaining cost-competitive in global markets, and ensuring trade and national security policies are carefully targeted and calibrated to accomplish their objectives without stifling innovation. The choices made now will shape not only the future of the industry, but America’s position in the world.
This report provides a snapshot of where the industry stands in 2025: the progress underway, the challenges ahead, and the stakes of getting it right.
