Semiconductor Manufacturing Jobs to Surge in Trump Administration

2024-12-09 industry

United States, Monday, 9 December 2024.
The US chipmaking boom, initiated under Biden, is set to increase semiconductor manufacturing jobs with major commitments from companies like Intel and Samsung during Trump’s presidency.

Major Investments Set Stage for Job Growth

The CHIPS and Science Act has catalyzed nearly $450 billion in private investments in the U.S. semiconductor industry [3], laying groundwork for substantial employment growth. The CHIPS Program Office has already announced $33.1473 billion in grants and up to $16.2 billion in loans across 35 projects in 20 states [3]. These initiatives are projected to create over 128,000 new jobs, including 42,000 manufacturing positions and 86,000 construction jobs [3], with much of the hiring expected to materialize during the upcoming Trump administration [1].

Timeline of Major Manufacturing Projects

Several major semiconductor manufacturers have committed to significant expansion projects with specific production timelines. TSMC’s first Phoenix factory is scheduled to begin full production in early 2025, with second and third factories projected for 2028 [1]. Samsung expects to commence production at its Texas facility in 2026, while SK Hynix plans to initiate mass production at its Indiana factory in the second half of 2028 [1]. The Commerce Department notes that these facilities typically require three to five years to become fully operational [1], indicating that much of the workforce expansion will occur during the next presidential term.

Federal Support and Industry Response

The initiative is backed by substantial federal support, with $39 billion allocated for manufacturing incentives [2]. The program has already shown significant momentum, with over 300 statements of interest received from private companies across 35 states [2]. However, some companies are reassessing their participation, as evidenced by Microchip Technology’s recent decision to pause its pursuit of a $162 million federal grant for expansions in Oregon and Colorado [5], highlighting the dynamic nature of the industry’s response to these initiatives.

Strategic Defense and Economic Implications

The Pentagon has demonstrated its commitment to this initiative by investing an additional $160 million from the CHIPS Act into the Microelectronics Commons [4], establishing eight regional hubs across the country. This investment underscores the critical nature of semiconductor manufacturing for both economic and national security interests. The program has already led to the creation of a network of approximately 1,200 organizations across 35 states [4], forming a robust foundation for future growth in the semiconductor manufacturing workforce.

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