The Semiconductor Industry Association (SIA) has released a report that says the country's chip design leadership is facing increasing challenges.
According to the data, the global share of US companies in chip design reached 50% in 2015 and 46% in 2020. If we continue on our current trajectory,By the end of the decade, the global share could fall another 10 per cent to 36 per cent, with other regions taking a bigger share.
According to SIA, there are three main challenges.
One is that chips are becoming more complex, and with them the cost of research and development is rising, especially those made at cutting-edge manufacturing nodes. Research and development costs for the 28-nm process are $51 million, compared to $542 million for the 5nm process, according to the data.
The other is a shrinking supply of chip designers, with the industry facing a shortage of skilled workers, expected to be 23,000 by 2030.
The third factor is the global market. The United States, which has imposed more sanctions than any other country in the world, is also worried about the backlash.
With private sector investment in chip design expected to be between $400 billion and $500 billion over the next 10 years, SIA suggests that public sector investment needs to be complemented to meet these three challenges. SIA recommends that the public sector invest $20 billion to $30 billion in chip design, including tax credits.