The US government has recently outlined a clear goal for its semiconductor industry—ensuring that at least 50% of the chips used domestically are manufactured within the country, aiming to reclaim its leadership in global semiconductor manufacturing. Semiconductors, being the backbone of critical sectors such as artificial intelligence, automotive, and telecommunications, have seen their strategic importance grow significantly.

However, over the past three decades, the US share in global semiconductor manufacturing has sharply declined from 37% in 1990 to just 10% in 2022, a trend that starkly contradicts the nation's technological ambitions. To reverse this decline, successive US administrations have pushed policies to bring manufacturing back home.

From the Trump administration’s critical manufacturing incentives to the Biden-signed CHIPS and Science Act, and now proposed targeted tariffs, these measures have already spurred major global semiconductor players like TSMC and Samsung to invest heavily in US-based production facilities. The impact of these policies is gradually materializing.

In 2024, global semiconductor sales surpassed $600 billion for the first time, reaching $630.5 billion. According to the World Semiconductor Trade Statistics (WSTS) forecast, global sales are expected to grow by 11.2% in 2025 to $701 billion, with further expansion to $760.7 billion projected for 2026. Notably, the Americas region has emerged as the fastest-growing market, with a staggering year-on-year growth rate of 44.4%.

To achieve the 50% self-sufficiency target, the US government plans to strengthen policy tools further, including imposing additional tariffs on semiconductor imports and establishing a "chips-for-chips" tax credit mechanism to incentivize companies to prioritize domestically produced chips.