The Americas, and more specifically the United States, are still the world’s largest investors in semiconductor research and development.according to Updated global data from IC InsightIn 2021, the Americas took the initiative by investing 55.8% of the total $ 80.5 billion in technology research and development. However, the data show that Asia-Pacific countries are increasing spending at a much more rapid pace, earning 11.5% of the pie. This market is also approaching duopoly and seems to be trending over the next few decades.
Global investment in semiconductor R & D almost doubled from 2011 ($ 50.8 billion) to 2021 ($ 80.5 billion), but the United States showed nearly flat growth, spending 54.5% to 55.8% of the total. Increased to% (only 1.3% increase). .. Not surprisingly, Intel is one of the largest spenders in the region. That alone boosted 19% of total investment in 2021, $ 15.30 billion.
But the United States wants to accelerate its dominance over cutting-edge technology. Despite parliamentary delays and downturns, the country has approved a $ 52 billion worth of injections into local manufacturing capacity. Intel has also invested heavily in its home country, but the company seems to lack patience. According to Intel CEO, some of that investment could go further towards seemingly environmentally friendly European meadows. Part of this funding will undoubtedly lead to an improvement in the company’s integrated device manufacturing (IDM) 2.0 strategy, leading to the Angstrom era.
The United States benefits from being a state-of-the-art development hub. Top R & D companies such as Intel, Nvidia and AMD all have important R & D facilities in the United States. But it also benefits from the geopolitical instability and security concerns surrounding both Russia and China. There’s a reason (besides tax incentives) that Samsung is aiming for a $ 200 billion domestic manufacturing investment, alongside a similar investment from TSMC. The reason is that aggressive movements from Russia (or China) can impact production and disrupt global technology development, reducing operational impact. I am. Chinese officials have publicly described TSMC as if it were a juicy fruit.
Despite the US holding an investment record, its growth over the last decade is negligible compared to the growth in the Asia-Pacific region, which gained an additional 11.5% of the total and achieved 29.5% of the pie. is. This growth is primarily driven by Taiwan, home of TSMC, which has injected 14.4% ($ 11.52 billion) of the industry as a whole. Close by is Samsung’s hometown of South Korea, which accounts for 11.9% ($ 9.9 billion) of the total.
However, China’s aggressive investment strategy, backed by government funding, earned 3.1% ($ 2 billion) devoted to local R & D efforts to sell itself from Western suppliers. As a result, it is gaining more and more weight in the global market. -Armed sanctions and blockade of state-of-the-art technology. This all serves its purpose of achieving a production market strong enough to supply the major silicon to that area-and some. China’s goal is supported by controlling most of the rare metal extraction and routing throughout the supply chain around the world.
Europe invested $ 5.89 billion (11.6%) in 2011, a 8.1% reduction in the 2021 figure to $ 6.52 billion. Therefore, Europe did not stop investing much. It just stayed in that spending lane. But as Europe doubles its technological developments and brings mass production of the latest semiconductor technology to its shores, big changes await over the next decade. With the recently announced tip law, the European Union will secure approximately $ 43 billion worth of investment in local businesses and facilities. Although complete independence from the United States and Asia Pacific is already considered impossible, reducing vulnerability to global supply chain disruptions is a key element of Europe’s new focus in this area.
Intel is also supporting Europe’s efforts with the announcement of Silicon Junctions. Silicon Junction is an additional $ 80 billion worth of investment, which will increase R & D and manufacturing facilities across the continent in the same time frame. Together, these investments will bring Europe’s share of the global semiconductor investment table to about 20% by 2030, with a 12% explosion expected in less than 10 years.
Overall, global R & D investment has not changed much over the last decade. However, overclocked investment across the United States and Europe could begin to halt the Asia-Pacific tide, which is certain to increasingly pivot towards China’s investment. All of these moves are certainly important from a geopolitical point of view, but they have the main effect of accelerating innovation across the technology sector. This is the saying cherry blossom on the cake. Adding knock-on resilience to conflicts and pandemics is just a make-up. But we have seen strangers, more unexpected things happen.
