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SIA report (from 14)
autonomous vehicles. The U.S. has built-in
advantages in chip design, including being
home to the world’s best universities and a
highly skilled workforce.
Competition is increasing
Global competition in chip design is in-
creasing, however, as other countries
actively support the development of their
own design sectors. For example, China’s
fabless chip sector doubled in revenue—
from $12 billion to $24 billion—between
2017 to 2020.
“America’s longstanding leadership in
semiconductor design has spurred excit-
ing technological advancements, promoted
economic growth, and fortifi ed national
security,” said Matt Johnson, president and
CEO of Silicon Labs and 2023 SIA chair.
Building on momentum
“Building on the momentum from the re-
cent enactment of the CHIPS and Science
Act to strengthen domestic semiconduc-
tor manufacturing and research, leaders
in Washington should increase focus on
maintaining and even extending our semi-
conductor design leadership that is so fun-
damental to our country’s future.”
U.S. leadership in semiconductor design
has improved America’s ability to shape
technical standards, enhanced national
security, and created spill-over benefi ts for
adjacent industries.
America’s share has declined
America’s share of overall semiconductor
industry revenues has, however, declined
from 50% in 2015 to 46% in 2020. With-
out action, U.S. market share could de-
cline further in the years ahead, according
to the study, as global competitors make
signifi cant investments.
Critical challenges
1. Design and R&D investment needs
are on the rise
To meet rapidly
shifting market
demands, chips
have grown more
complex.
In turn, develop-
ment costs have
risen.
Today, the U.S.
private sector
invests more in
design R&D than any other region, but
public support for R&D in the U.S. lags
that of other regions.
Direct incentives
Bringing U.S. public investment in design
and R&D in line with international peers—
through direct incentives like an invest-
ment tax credit for semiconductor design
and greater public funding for basic R&D—
is critical to keep design in the U.S.
2. A shortage of domestic design tal-
ent
The U.S. semiconductor design industry is
on track to face a shortage of 23,000 de-
sign workers by 2030.
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