Semiconductor Industry Set To Electrify Over Next Decade

Long-term growth is projected for the semiconductor industry due to continued innovation, artificial intelligence, and demand for electric vehicles.

By Nora Caley
From the September / October 2023 Issue


The next decade is poised for extended growth in the semiconductor industry, despite projections calling for a short-term decrease in sales, recent market data shows.

Global semiconductor sales increased in 2022 by 3.2% to $574.1 billion, according to the Semiconductor Industry Association (SIA). That despite a slowdown in the second half of the year, which SIA attributed to inflation, decreased consumer spending, and weakened demand.

Citing estimates from the World Semiconductor Trade Statistics (WSTS), SIA projected semiconductor industry sales worldwide to decrease 10% to $515 billion in 2023. The expected downtown should be short, the association noted, as long-term growth is expected over the next decade, driven by further innovation in semiconductor technology, enabling artificial intelligence (AI), autonomous electric vehicles, and the internet of things (IoT).

Semiconductor Industry
(Photo: Adobe Stock / ryanking999)


The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 is one factor helping drive domestic manufacturing. President Joe Biden signed the bill into law in August 2022. SIA reported that the CHIPS Act has spurred more than 60 announcements of new semiconductor ecosystem projects across the U.S., “including new manufacturing facilities, expansions of existing sites, and facilities that supply materials and equipment used in chip manufacturing.”

Other announcements, according to SIA, heralded more than $210 billion in private investments across 22 states to increase domestic manufacturing capacity, and 44,000 new, high-quality jobs.

There were an estimated two million direct employees worldwide in 2021, according to the Deloitte report, “The Global Semiconductor Talent Shortage,” and the sector will need an additional one million skilled workers by 2030. Workers will range from tradespeople to electrical engineers to operators and technicians.

Here are some of the regions that are successfully attracting semiconductor companies.

Dutchess County, NY: Heart Of The Semiconductor Industry

Nestled in the heart of Hudson Valley, Dutchess County, New York has established itself as a premier hub for semiconductor manufacturing, with several of the industry’s leading businesses headquartered in the area. Just 90 minutes from New York City, the county offers an unrivaled location advantage that connects companies to a vast consumer base.

Domestic and international powerhouses continue to excel in Dutchess County, thanks to its deep talent pool of more than 1.2 million workers, business-friendly environment, and investments in workforce development.

Semiconductor Industry
IBM employee in a Dutchess County, New York facility. IBM announced earlier this year it would invest $20 billion across the region to increase production. (Courtesy of Think Dutchess)


One tech company that has found success is IBM, which has operated in Dutchess County for nearly 75 years. Many groundbreaking industry innovations were developed in Dutchess County, such as progressive developments of mainframe technology and the company’s only quantum computation center. As President Joe Biden noted in his visit last fall, “There’s a lot of reasons to be optimistic” for the future. In 2022, IBM announced it would invest $20 billion across the Hudson Valley region to increase its production of semiconductors and develop even more advanced technologies.

Other domestic manufacturing companies that have built up operations include Hybrid Electrostatic LLC (HES Industries), Solid State Cooling Systems, and eMagin. The leading producer of U.S. OLED microdisplay technology, eMagin has emerged as one of the industry’s top innovators by investing in Dutchess County’s manufacturing facilities and skilled workforce for more than 15 years. Just recently, semiconductor manufacturer Advanced Micro Devices (AMD) established a research and development center in Fishkill, citing the region’s top research universities and engineering talent pool as reasons for expanding.

Dutchess County has also become a prime destination for international businesses. Earlier this year, onsemi invested more than $1.3 billion to establish the nation’s only 12-inch power discrete image sensor fab. Operating the country’s largest chip manufacturing facility, onsemi is boosting New York’s leadership in the semiconductor industry while growing its local presence through investments in workforce training initiatives.

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Companies have made groundbreaking strides by utilizing Dutchess County’s robust business ecosystem. The county is home to several advanced manufacturing facilities, including iPark 84, which houses businesses like HES Industries and onsemi and provides specialized space and equipment needed for advanced manufacturing and semiconductor production.

But facilities can’t power an industry alone. That’s why Dutchess County prioritizes workforce development, working with local educational institutions to establish programs that address the needs of businesses in the community. Several of these programs have found a home at Dutchess Community College, including the Mechatronics Lab. The 6,000-square-foot, state-of-the-art facility offers students opportunities to develop in-demand technical skills and connect with the lab’s industry partners, which include eMagin and onsemi. Thanks to these initiatives, businesses investing in Dutchess County know they’ll have the talent they need to succeed.

The future of the semiconductor industry is bright in the Hudson Valley, and there’s still room to grow. With a highly skilled tech workforce, inclusive community, and proximity to New York City, Dutchess County provides countless opportunities for companies to expand and thrive.

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