The Backflow of the Chip Industry May Fail Because of More Fab Factories

The Backflow of the Chip Industry May Fail Because of More Fab Factories

According to industry analysts, restoring US semiconductor manufacturing at the pinnacle of the electronics industry would be difficult until a more fundamental ecosystem of domestic chip assembly and testing businesses is rebuilt.

While US senators are set to pass a $52 billion stimulus plan to help the local semiconductor sector recover, there are concerns that the majority of the funds would go to chipmakers that do not require assistance. The United States' rapidly diminishing assembly and testing divisions have gone unnoticed.

"Incentive ideas are being explored right now," Matt Kelly, the worldwide electronics association's top technical specialist, told EE Times. "People are concerned that they are artificially sustaining the business, and that if the incentives are removed, the entire game plan would vanish."

The Backflow of the Chip Industry May Fail Because of More Fab Factories

The IC substrate, which enhances chip density on printed circuit boards for small-size, low-power devices for automotive, Internet of things, and 5G applications, is one of the major gaps in the US electronics sector.

Kelly stated, "We have never made IC substrates in North America." "This is not a resurrected narrative. This is a story that we must learn about."

According to research by Mordor Intelligence, the market for IC substrates would be worth $7.7 billion in 2020 and $12.2 billion by 2027. Printed circuit boards in vehicles, mobile devices, and Internet of things devices that link processors or connect chips together have moved to meet the demand for smaller size, greater performance, and reduced power consumption.

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