Study identifies most likely locations for US semiconductor plants

The passage of the Semiconductor Manufacturing Incentives Creation (CHIPS) Act has led to widespread enthusiasm for the possibility of increasing semiconductor manufacturing in the United States.

With the U.S. likely to grow in semiconductor production, Ball State University researchers have pinpointed the locations nationwide that are most likely to expand semiconductor chip production in the coming years. .

“Semiconductor plant site decisions after the CHIPS Act“, a recently published study from Ball State’s Center for Business and Economic Research (CBER), identifies 83 U.S. counties, arranged into three tiers, where new factory locations Most likely, the study was co-authored by CBER researchers, Dr. Michael Hicks and Dr. Dagney Faulk.

“The CHIPS Act provides incentives to increase growth potential in the domestic semiconductor manufacturing sector,” said Dr. Hicks. “Combined with costly disruptions in chip production during the COVID-19 period, it is particularly likely that the United States will see new semiconductor production. Where will that production take place? is a significant policy concern across many countries.”

The CBER study combines data from the Semiconductor Industry Association, US Census Bureau, Bureau of Economic Analysis, secondary studies and other private sources to model potential locations. capabilities of semiconductor manufacturing companies.

Among the more important variables to explain the expansion of the semiconductor industry are the education level of the workforce (bachelor’s degree or higher), the percentage of residents with graduate school, population growth, and so on. and unexplained high productivity (generalized accumulation).

According to CBER research, the “Tier 1” metropolitan areas considered most likely to be considered for the latest semiconductor plant are: Boulder, Colo., Chicago, Ill.; Columbus, Ohio; Dallas-Fort Worth-Arlington, Texas; Denver-Aurora-Lakewood, Colo.; Houston-The Woodlands-Sugarland, Texas; Madison, Wisconsin; Miami-Dade County, Fla.; New York-Northern New Jersey-Long Island; San Diego-Carlsbad, California; Seattle-Tacoma-Olympia, Wash.; and St. Louis, Mo.

The report also identifies 20 potential Tier 2 and 17 Tier 3 plant locations, which are considered “likely” and “likely” compared to Tier 1.

“Level 1 sites are the ones most likely to be selected to build new semiconductor manufacturing facilities,” said Dr. Faulk. “These locations all have a sufficient number of available workers and large scale urban area with many suitable districts or at least one very suitable district for expansion.”

The study also compared its results with a separate list of new proposed plants reported to the Semiconductor Industry Association; Out of those 20 locations, the CBER model correctly predicted 18 of them. Two sites that were not included in the CBER study—West Lafayette, Ind., and Midland Metropolitan Area-Bay City, Mich.—both nearly met the researchers’ inclusion criteria.

Although the United States currently produces a large portion of the world’s microchips, widespread supply disruptions recently have caused significant delays in the production of cars, home appliances, and electricity. consumer death.

The CHIPS Act of 2022 provides substantial funding and incentives for semiconductor companies and related companies to locate, upgrade, and expand in the United States. The Act provides $52.7 billion in emergency additional allocations. The largest portion, $50.0 billion over five years, was used to establish the CHIPS for America Fund to finance the provisions of the National Defense Authorization Act for fiscal year 2021.

These regulations require the development of the domestic market Semiconductors production capacity, research and development, and workforce training programs. The largest share is allocated to manufacturing second-hand chips, which are essential for the military, automotive and other industries.