Onshoring semiconductor manufacturing

Extracted Attributes

• Challenges

  High costs, talent shortages, significant energy consumption for AI infrastructure

• Key Driver

  Mitigation of risks from global supply chain disruptions

• Strategic Importance

  National security, reindustrializing the United States, maintaining technological leadership

• Government Incentive (US)

  25% investment tax credit

• Government Investment (US)

  $52 billion in manufacturing grants and research

• Economic Impact (Supply Chain Disruptions)

  $269 billion in missed revenue for High Tech businesses (2021-2022)

Timeline

• Supply chain disruptions cost High Tech businesses $269 billion in missed revenue, prompting the push for onshoring semiconductor operations. (Source: web_search_results)

  2021-2022

• Establishment of new semiconductor manufacturing facilities in the United States, such as the TSMC facility in Arizona, as part of onshoring efforts. (Source: related_documents)

  Ongoing

• US government promises to invest $52 billion in manufacturing grants and research, along with a 25% investment tax credit, to support the semiconductor industry. (Source: web_search_results)

  Ongoing

Morris Chang

Morris Chang Chung-mou (Chinese: 張忠謀; pinyin: Zhāng Zhōngmóu; born July 10, 1931) is a Taiwanese billionaire business executive and electrical engineer. He is the founder of Taiwan Semiconductor Manufacturing Company (TSMC) and was the company's chief executive officer (CEO) from 1987 to 2005, and its chairman until 2018. As of July 2025, his net worth is estimated at US$5.1 billion. Born in China, Chang lived in Hong Kong and immigrated to the United States. After attending Harvard University, he earned three degrees from the Massachusetts Institute of Technology (MIT) and received his doctorate from Stanford University in 1964. He began his career as a semiconductor engineer, first at Sylvania Electric Products, then Texas Instruments, and eventually became the president and chief operating officer of General Instrument in 1984. During the 1980s, Chang moved to Taiwan to serve as head of the Industrial Technology Research Institute (ITRI). In 1987, he founded TSMC, the world's first semiconductor foundry, and is regarded as the founder of Taiwan's semiconductor industry. He pioneered the foundry model of semiconductor fabrication, leading TSMC to become the largest company in Taiwan and one of the world's largest semiconductor companies. President Tsai Ing-wen awarded him the Order of Propitious Clouds in 2018 and the Order of Dr. Sun Yat-sen in 2024 for his contributions to technology development in Taiwan.

Web Search Results

• Onshoring Semiconductor Manufacturing - Accenture

  Current Country: United States BLOG # Semiconductor Manufacturing in the age of onshoring 3-MINUTE READ March 5, 2024 Supply chain disruptions between 2021 and 2022 cost High Tech businesses $269 billion in missed revenue, prompting businesses and governments alike to share an overarching goal: mitigate the risks associated with having most of the world’s semiconductor chips produced in very few locations by onshoring these operations. [...] ## Four steps to navigate the current landscape ### Step 1: Create internal capability to engage in the public/private partnerships. The US government alone promised to invest $52 billion in manufacturing grants and research to the semiconductor industry along with a 25% investment tax credit. The challenge for company leaders is how to secure some of this government funding. [...] ## High Stakes, High Potential The journey down the path of manufacturing reinvention is long and complex, but the chances of success rise when company leaders address their strategy with a longer-term horizon than their business traditionally dictated. Now is the time to turn shovel-ready projects into significant onshore assets. #### Related insights ### WRITTEN BY Timothy Chu Managing Director – Strategy & Consulting, Semiconductor ## Like this content?

• Onshoring Semiconductor Production: National Security Versus ...

  #### Do Alternatives Exist? If onshoring proves to be too expensive or difficult, one alternative that would still increase resilience is to friendshore production in places like Japan, South Korea, and Malaysia. Each of those countries has experience with semiconductor manufacturing or testing and packaging and offers lower costs than production in the United States. In the event of a conflict over Taiwan, those countries would still likely be able to produce and ship chips. [...] effort to onshore semiconductor manufacturing is largely a product of fears of a conflict over Taiwan, then reducing the likelihood of such a conflict by bolstering deterrence would directly address such concerns. [...] Alternatively, policymakers could turn to coercive diplomacy if they deem that relocating the bulk of semiconductor manufacturing is a strategic imperative but the CHIPS Act is insufficient. Such an approach could entail threatening to withhold critical manufacturing equipment or refusing to service existing equipment at Taiwan’s foundries unless they shifted more production to the United States. Doing so, however, would fundamentally damage U.S.-Taiwan relations and make Taiwan far more

• A Strategy for The United States to Regain its Position in ... - CSIS

  fundamental in the development of proprietary intellectual property. All of this helps determine the course of future semiconductor design. Onshoring will also help reestablish some of what we have lost in the machine tool industry as well as laying the groundwork for the reeducation of the workforce necessary to rebuild manufacturing. It can be done. Tesla did it. [...] Regarding micro architecture design and system level planning: the U.S. is still in relatively good shape in determining and laying out designs to meet the specifications required to achieve appropriate chip performance. The major problem is in the end use markets. It is essential that we onshore some of the manufacturing of those electronic products that we have lost. This will help ensure a reasonable domestic market in support of semiconductor manufacturing. In addition, the process of [...] relatively small, the equipment is very expensive. The cost of a single piece of equipment can run into millions of dollars. In the case of lithography, hundreds of millions. Moreover, the technological requirements placed on the design and production of semiconductor equipment have rapidly exceeded the technological demands of virtually every other industry. Recognizing this, as compared to the machine tool industry, outsourcing of the semiconductor equipment industry was and is very

• The Onshoring Surge and Its Impact on Your Global Sourcing Strategy

  Nowhere is this shift more apparent than in the ongoing onshoring surge across the semiconductor industry—a movement that is not only changing production footprints, but also recalibrating how businesses think about risk, agility, and long-term resilience. ## U.S. Semiconductor Onshoring Takes Center Stage [...] Though the semiconductor industry is at the forefront, the ripple effects of this onshoring trend are expected to influence adjacent industries as well. From component distributors to EMS providers, companies are re-evaluating their geographic strategies to remain competitive. [...] The semiconductor sector, long reliant on overseas manufacturing hubs, is now leading a historic realignment. Several prominent industry players are spearheading massive domestic investments: These sweeping commitments mark a new chapter for U.S.-based manufacturing and signal a broader trend toward regionalization in global supply chains. ## What Onshoring Means for Global Sourcing Strategy

• 2025 global semiconductor industry outlook - Deloitte

  With onshoring and reshoring of fabrication, assembly, and test in the United States and Europe, there will likely be pressure on chip companies and foundries as they source more of the talent locally in 2025. For example, talent challenges are contributing to delays in opening new plants.57 On a related note, “friendshoring” (collaborating with companies from countries considered to be allies) can provide stability and resilience to supply chains, especially for the United States and European [...] disruptions than ever before. Although the industry is likely to become less concentrated geographically thanks to various chips acts—and initiatives like onshoring, reshoring, nearshoring, and friendshoring are all still in their early days—the industry remains highly vulnerable for the next year or two, at least.