Semiconductor Industry Association (SIA) and Boston Consulting Group released a report on Wednesday suggesting that the United States’ leading chip design market could lose market share without sufficient government support.
The report stated that the U.S. share of chip design revenue has dropped from over 50% in 2015 to 46% in 2021. According to the report, this figure could slump below 36% by the end of the decade without sufficient support from the government. This comes after the U.S. has already lost its lead in chip manufacturing to China.
Following the loss of its poll position as the world’s leading chip manufacturer, the U.S. government passed the CHIPS and Science Act this year in an effort to restore its lead. This initiative includes $39 billion in manufacturing grants and $13 billion for R&D activities.
Among the United States’ leading chip designers are Nvidia, Intel, and Qualcomm. While Intel Corp designs and manufactures chips in-house, Nvidia Corp and Qualcomm Inc handle the design while outsourcing production to foreign companies, including the likes of Taiwan Semiconductor Manufacturing Co.
Government support is also listed by the report as a significant driver of market share growth for China and South Korea.