When the Chips

are Down:
Industry Outlook and
Policy Response to the
Semiconductor Crisis

April 2021
 Introduction
Who knew how far reaching COVID-19’s impact would be? Impacts to sectors like travel
and hospitality were obvious, but who could predict that basic computing technology
spending would intensify or that changes in consumer purchasing would wreak havoc
with the global supply chain?

This paper explains how a confluence of issues, fueled by the health crisis, contributed
to the current chip shortage. It also discusses innovations that are driving the need
for greater chip capacity and production. Additionally, the analysis outlines U.S. policy
considerations, given the current market conditions, and explores semiconductor
manufacturing lead times and factory build costs.

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 2
The pandemic led to unpredictable consumer
spending behaviors created by stay-at-home
orders, which served as the catalyst for the work,
educate and entertain-at-home trends. These
lifestyle shifts led to unprecedented purchasing
of technologies to enhance communications and
productivity. They also compelled manufacturers
of products such as automobiles and other
recreational products to recast sales forecasts,
expecting a downturn in orders as a byproduct
of these new trends. As 2020 unfolded and
consumer spending patterns solidified, these
same manufacturers, attempting to circle back to
pre-COVID product levels, were caught off-guard,
exposing vulnerabilities in the global supply chain
and a dependency on the offshore production of
semiconductors.
How COVID-19
Triggered a Chip
Shortage in the
Automotive Sector
When the global health crisis began in early 2020,
automotive manufacturers (original equipment
manufacturers, OEMs), predicting a prolonged
economic downturn, revised sales forecasts of new
autos downward and cut back on orders of supplies
and materials, including orders of semiconductor
chips. According to World Semiconductor Trade
Statistics data, OEMs reduced orders by over 30%
year-over-year in April and May 2020 (see Figure 1).1

COVID-19 brought to light not only the U.S.
technology industry’s reliance on offshore chip
manufacturing but also how sudden fluctuations in
consumer demand and inaccurate forecasting can
gravely impact product production outputs. It also
raised awareness for the need to grow domestic
chip production and capacity levels as the growth
curve for technologies continues to expand.
The pullback had ripple effects. Suddenly freed-up
semiconductor production capacities were filled
by companies building technology to support the
thriving stay-at-home economy.
The auto industry expected a dip in new vehicle
sales, but the opposite happened: spending
rebounded over the summer and fall of 2020,

FIG. 1 Y
 EAR-OVER-YEAR MONTHLY SALES GROWTH PERCENT CHANGE
IN AUTOMOTIVE ICS 2020-2019
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
Source: World Semiconductor Trade Statistics Data

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 3
and auto sales bounced back quicker than foreseen.
Accordingly, OEMs attempted to scale up purchasing
to backfill inventory levels. However, the lack of
available chip fabrication capacity in the oversold
fab market and insufficient availability of chips and
subcomponents forced vehicle production to slow
and, in some cases, stop (see Note 1). Market research
firm Strategy Analytics expects global vehicle
production to drop by 2.2 million units because of the
shortage, with a loss of $7.5 billion spanning the value
chain of electronic vehicle systems.
Note 1: The time from “wafer start” at the
beginning of a semiconductor production
run to finished chips that are ready to ship is
measured in months. Thus, the impact of order
delays or temporary pauses can be felt for a
half year or more.
Technological
Innovations Driving
Chip Demand
Over the past decade, the United States has
been at the forefront of developing emerging
technologies like artificial intelligence (AI), cloud
computing and electric vehicles (EVs). In parallel,
the market for connected and “smart” consumer
technologies has escalated, with products in the
digital health and smart home category expected
to reach almost 200 million units shipped by 2024
(see Figure 2). These technological innovations are
driving the need for an accelerated number
of sophisticated semiconductor chips.
The following sections detail major technologies and
trends influencing demand for semiconductors over
the next decade.
Automotive Evolution
Two major trends underpin the increasing quotient
of sensors, processors and other chips in the modern
When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research
EVOLUTION OF CHIP PRODUCTION
Semiconductor production is an intensely precise
and technical process, which begins with the
creation of a silicon wafer. As the industry has
evolved, so too have wafer sizes, shifting from
sub-200 mm to 300 mm wafers, which offer
greater surface area. This translates to higher
chip production volumes and improved costs/
efficiencies (300 mm wafers offer over 2x surface
area than 200 mm).2 Technical advances in
manufacturing have also enabled 300 mm wafers
to produce leading-edge transistors using the 5
nm lithography process (see Note 2), employed in
applications requiring the fastest and most efficient
chips available such as artificial intelligence and
wireless technology. In the early 2000s, wafer
producers known as “fabs” began investing in the
development of the larger wafer sizes (300 mm) as
the need for advanced chips grew. However, over
the past five years, demand for the 200 mm wafers
has escalated while investment in these facilities
has slowed. Chips built off 200 mm wafers tend to
be more stable and cost less compared to cutting-
edge 5 nm chips from 300 nm wafers. In addition,
sectors that tend to use the same chips for long
design cycles, such as the automotive sector, have
many 200 mm applications, while sectors that turn
designs over more quickly, such as the smartphone
sector, use fewer chips from 200 mm wafers.
Note 2: Five nm or other chip “sizes” represent
commercial names given to generations of
chips of a certain size that use specific process,
architecture and design technologies and do
not represent the geometry of a transistor.
passenger vehicle. Today’s cars incorporate advanced
driver assistance systems (ADAS) features, such
as collision avoidance and active lane-keeping
that require arrays of sensors and processors
enabling the vehicle to perceive the surrounding
environment. However, even more sensors and
4
FIG. 2 U
 NIT SHIPMENTS OF SMART HOME AND HEALTH AND FITNESS TECH
TO U.S. DEALERS, THOUSANDS
n Smart Home n Health and Fitness
250,000
200,000
150,000
100,000
50,000
2013 2014 2015 2016
processors are required for the self-driving features
that are offered on a growing number of cars every
year. Electrification — or the production of electric
powered vehicles — is another trend feeding
automotive industry demand for semiconductors.
Self-driving capabilities, ADAS features and battery
power management functions found in EVs all require
logic and computing power, driving a growing
industry-wide appetite for semiconductors. The
industry expects chip demand to expand dramatically
over the next five years as ADAS features become
democratized and OEMs pivot production to EVs,
which can require over 3000 chips per car.3
Frost & Sullivan expect U.S. EV sales to reach
6.9 million units by 2025, up from 1.4 million
in 2020.4
5G Wireless Consumer Ecosystem
The rollout of 5G consumer networks in the United
States alone will foster a surge in demand for chips
on a logarithmic scale. As with any new wireless
generation, the arrival of 5G is prompting a major
upgrade cycle in smartphones, in which over a half
billion 5G-enabled smartphones will ship to the
United States over the next four years.5 According to
the Taiwan Semiconductor Manufacturing Company
(TSMC), 5G phones have 30% to 40% more chips than
their 4G counterparts.6
When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research
2017 2018 2019 2020 2021 2022 2023 2024
What’s more, 5G chips will likely find themselves in an
increasing variety of connected consumer devices
that leverage the advanced capabilities of the new
network. Cellular operators are expected to make a
play in the home broadband market, deploying nearly
10 million fixed wireless 5G modems in homes by
2024.7 And CES 2021 featured a variety of 5G-enabled
laptops, demonstrating that the next generation of
wireless technology will not be limited to phones.
Industrial Internet of Things/Industrial
Automation/Industry 4.0
The industrial internet of things (IIoT) is bringing
about significant changes in manufacturing, logistics
and agriculture. These sectors are realizing greater
efficiencies through automation by integrating AI,
sensors, machine-to-machine communication and
robotics into their processes.
Connectivity and computing — and therefore,
semiconductors — are essential to IIoT and will see
increasing demand in the coming years. Juniper
Research predicts that IIoT connections will grow
worldwide from 17.7 billion in 2020 to 36.8 billion in
2025 largely due to demand in smart factories alone.8
When we consider increasing demand from other
commercial and industrial sectors, like agriculture and
logistics, near-term global chip demand projections
stemming from IIoT applications will soon tally in the
hundreds of billions.
5
Cloud Computing FIG. 3 A
 SIA PROJECTED TO
The growing popularity of cloud-based services has CAPTURE NEARLY ALL
fueled a need for the construction, maintenance MANUFACTURING GROWTH
and updating of data centers throughout the globe, 2019-2030 Installed Global Wafer
where revenues are expected to reach $251 billion Capacity Projection
by 2026.9 Data centers thrive on servers, memory,
storage and network equipment and, consequently, 83%
in Asia
semiconductors. This growth has spurred fierce
competition among semiconductor companies, 82% Singapore
Japan
with eight of the 15 largest semiconductor deals
in Asia
over the past two decades occurring during the 79% S. Korea
last two years and attributed to gaining market in Asia
Taiwan
penetration into data centers.10 NVIDIA’s pending
acquisition of ARM for $38.59 billion and AMD’s
pending purchase Xilinx are but two examples. China

Europe
U.S. Losing Chip 12.5% 10.4% 10.0% U.S.

Production Market 2019 2025 2030

Source: Semiconductor Industry Association 2020 State of the

Share
U.S. Semiconductor Industry

The U.S. automobile industry’s chip shortage,
albeit challenging and unfortunate, was
serendipitous for the tech industry in that it
highlighted an important concern: the United
States’ reliance on offshore chip manufacturers.
The United States is a leader in semiconductor
innovation in several categories, accounting
for 47% of the global sales market share and
65% of the global “fabless” market according to
the Semiconductor Industry Association (SIA).
However, when it comes to manufacturing
capacity (i.e., chip fabrication), the United States is
lagging, with a 12.5% share of global production in
2019, which is forecasted to drop to 10% by the end
of 2030 (see Figure 3).11
The global semiconductor industry is projected
to reach $469 billion in 2021, increasing 8.4%
from 2020.12
Today, eastern Asia (Taiwan, South Korea,
Japan and China) holds the lion’s share of the
worldwide chip production capacity with 73%
market share.13 And with rising demand from
technology innovations such as those previously
discussed, demand for semiconductor capacity
(manufacturing of wafers per month) is expected
to increase 56% or 10 million wafers per month
from the current installed base by 2030.
If the current trajectory continues, we will fall short
of meeting this demand. As of June 2020, only 50%
of fabs needed by 2030 were “in development” (this
includes planned or announced, groundbreaking
and production) with another 50% unplanned for.
And of the new fabs “in development,” only 6% were
slated to reside in the United States (see Figure 4).14
Intel’s announcement on March 23, 2021, of its plans
to construct two new fabs in Arizona15 helps fill the
gap, but significant opportunity remains to satisfy
the unplanned gap.

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 6
Not an Easy Fix: FIG. 4 F ABS “IN DEVELOPMENT”
SHARE BY COUNTRY (%),
Systemic Issues as of June 2020

Facing the Chip Taiwan Korea

19% 15% Japan 8%
Industry and the US 6%
Supply Chain China
42% Europe 8%
Although the semiconductor shortage feels like Others 4%
a novel event, the emergence of bottlenecks did Source: BCG and SIA: Government Incentives and US
not occur in a vacuum, or overnight. While the Competitiveness in Semiconductor Manufacturing

pandemic certainly accelerated the conditions for

the present shortage, the semiconductor supply
chain contains a variety of systemic issues that
will make any quick resolution of the shortage
a difficult challenge.
Order Lead Times Lengthening
Long lead times for orders of new semiconductors
are compounding the existing shortage, but this
is also one of the primary systemic constraints on
the chip supply chain overall. Lead time — the
time from when a customer places an order to
receiving the final product — can take between 14
to 26 weeks to complete depending on the design
complexity of the chip, according to the SIA.16
DAMAGE FROM FIRE AT TOKYO
CHIP PLANT ADDS TO GLOBAL
CHIP SHORTAGE
In March 2021, Renesas Electronics Corp. in
Tokyo reported that the damage from a fire in
their fab plant would take three to four months
to repair. The company accounts for 30% of the
global market for microcontroller units used in
cars, with two-thirds of the chips manufactured
at the damaged facility used by the auto
industry.18

FIG. 5 O
 VERVIEW OF CHIP DEVELOPMENT PROCESS

Source: H
 itachi17

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 7
Rome Wasn’t Built in a Day, Nor Are While JIT inventory systems align raw material orders
Semiconductor Foundries from suppliers directly with production schedules to
increase efficiency and reduce waste, this strategy
The combination of long lead times and backlogs
also minimizes flexibility to respond to disruptions
for orders point to a seemingly simple solution: build
— a flaw that the present chip shortage illuminates.
more foundries and semiconductor manufacturing
plants to address the supply-demand imbalance.
JIT inventory models are also susceptible to shipping
However, with costs in the tens of billions of dollars
bottlenecks as pandemic-induced restrictions
and construction timelines charted over several
continue to make waves throughout the shipping
years, standing up new semiconductor production
industry. Notably, 7% of ocean freight is still not
facilities is no easy task.
making it out of Chinese ports, 20 which represent a
crucial step in the global chip supply chain, causing
For example, TSMC has announced plans to build
a scramble to airfreight that has been hampered by
a new foundry in Arizona as a means of diversifying
25% less cargo capacity this quarter than last year.21
the semiconductor supply chain outside of its high
Factor in a July printed circuit board factory fire
concentration in East Asia. Although construction
in Japan, as well as an October fire at Asahi Kasei
begins this year, fabs will not start production until
Microdevices’ Japanese advanced sensing devices
2024, as the current average build time for a new
plant, and the global supply chain has only become
semiconductor facility is three to five years.
more stressed for chip and component shipments to
meet companies’ JIT inventory needs.
Deep Pockets
Outside of the time investment, the costs for
building a next-generation chip factory have grown CHIP SHORTAGE IMPACT
significantly in recent years and are set to climb with EXTENDING TO BROADER TECH
the shift to more advanced chips. Intel announced in SEGMENTS
March 2021 the construction of two fabs in Chandler,
Beyond the auto sector, the chip shortage is
Arizona at a cost of $20 billion. The Arizona TSMC
affecting other segments of the technology
plant, slated to produce 5 nm chips, is expected to
sector, from smartphones to PCs and TV LCD
cost $12 billion.19 As 5 nm chips become a larger part
panels. The extent and magnitude of the scarcity
of the technology ecosystem, this will push up the
remain uncertain as OEMs continue to seek
average costs of building a new factory to between
avenues to shore chip supplies but concerns
$14 billion to $18 billion. And for the next-generation
remain prevalent.
3 nm chip, TSMC’s Taiwan fab facility, which started
construction in October 2019, is estimated to cost
$20 billion. Environmental Impact
The growing impact of climate change, especially in
Geographic Impact on Supply Chain
global chipmaking regions, is playing an increasing
As was stated, 73% of worldwide chip production role in the stability of the chip supply chain.
capacity resides in eastern Asia. Such a high Taiwan is experiencing one of its worst droughts
geographic concentration in semiconductor in decades, and companies, including TSMC and
manufacturing represents substantial risk to global United Microelectronics Corporation (UMC), were
chip supplies. The pandemic hastily highlighted the asked by the government to scale back water usage
danger of relying on one region to largely fulfill chip by 11% in February. 22
demand for a global enterprise ecosystem defined
by just-in-time (JIT) inventory strategies.

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 8
Stateside, the severe winter storm that swept across
Texas in late February caused blackouts at fabs
run by Samsung, NXP and Infineon.23 While TSMC
and UMC had water trucks on hand to ameliorate
the imposed water usage restrictions during the
Taiwanese drought, the surprise of deep freezes at
Texas semiconductor plants underscore the need
for mitigation strategies to combat the substantial
negative impact that adverse environmental events
can have on the semiconductor supply chain.
Fabs can use up to 4 million gallons of pure
water per day for chip fabrication.24
U.S. Policy
Activities Affecting
Semiconductors
The Trump administration sought forceful actions
aimed at decoupling the U.S. economy from China’s,
citing wide-ranging national security threats as a
means of enacting restrictive supply chain policy
and legal changes. Roadblocks on imports, including
tariffs, have cost the technology industry, American
businesses and consumers billions of dollars since
the tariffs on China began in 2017, which do not take
into account the cost of retaliatory tariffs or other
tariff actions taken against trading partners.
The shift in trade policy has put technology at the
center of the debate — especially by acknowledging
that “foundational technologies” are at the apex of
America’s both economic competitiveness and national
security. As the Biden Administration begins its term
and commences review of global supply chains, getting
issues specific to the semiconductor industry right can
help ensure the tech ecosystem flourishes.
The most direct response by the Biden administration
to the recent semiconductor supply chain stress
has been the Executive Order (EO) on America’s
supply chains. The EO “launches a comprehensive
When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research
review of U.S. supply chains and directs federal
Departments and Agencies to identify ways to secure
U.S. supply chains against a wide range of risks and
vulnerabilities.” Section 3 of the EO directs four
federal agencies to produce reports within 100 days
on risks to supply chains and recommendations to
address these risks. Semiconductors are first among
the four listed areas:
• The Department of Commerce (DoC) to identify
risks in semiconductor manufacturing and
advanced packaging supply chains
• The Department of Energy (DoE) to identify risks
in the supply chain for high-capacity batteries,
including EV batteries
• The Department of Defense (DoD) to identify
risks in the supply chain for critical minerals and
other identified strategic materials, including
rare earth elements
• The Department of Health and Human Services
(HHS) to assess risks in the supply chain for
pharmaceuticals and active pharmaceutical
ingredients
The EO goes on to require agencies to produce
additional reports within one year: the DoD is
assigned supply chains for the defense industrial
base; the HHS is tasked with supply chains for the
public health and biological preparedness industrial
base; the DoC and Department of Homeland
Security are assigned supply chains for critical
sectors and subsectors of the information and
communications technology (ICT) industrial base,
including the industrial base for the development of
ICT software, data and associated services; the DoE
is tasked with supply chains for the energy sector
industrial base; the Department of Transportation is
given supply chains for the transportation industrial
base; and the U.S. Department of Agriculture
is assigned supply chains for the production of
agricultural commodities and food products.
Additionally, in November 2019, the DoC proposed
broad new rules to regulate Information and
Communications Technologies (ICTS) transactions
deemed to pose a threat to U.S. national security.25
9
The DoC based these rules on EO 13873, Securing the
Information and Communications Technology and
Services Supply Chain.26 On January 21, 2021, the last
day of the Trump Administration, the DoC issued new
interim final rules that provisionally put into place
a new set of procedural rules that could prohibit or
unwind ICTS transactions on a case-by-case basis that
(i) involve certain categories of ICTS; (ii) are designed,
developed, manufactured or supplied by persons
owned by, controlled by or subject to the jurisdiction
or direction of a “foreign adversary”; and (iii) pose an
“undue or unacceptable risk” to the national security
of the United States.27 The DoC grounded its rules in
the International Emergency Economic Powers Act
and subjects violators to potentially harsh penalties.
For years, Congress has debated policies to spur
the domestic production of chips. Lawmakers have
considered various policies that have aimed to either
provide incentives to companies for producing these
important chips in America or make it more costly
to produce overseas. Different pathways have been
hotly debated in Congress, and over time lawmakers
have increasingly supported incentivizing companies
to build capacity and produce domestically. These
incentives vary. While the Biden Administration
recently proposed $50 billion in federal assistance
to boost domestic chip production, it will take
Congress to pass the legislation. At the time of this
writing, the Senate Commerce Committee plans
to markup a sweeping U.S. competitiveness and
infrastructure bill called the Endless Frontiers Act
after Easter recess. Within this bill is the CHIPS for
America Act, specifically focused on semiconductor
competitiveness, which some estimate may be
funded as much as $300 billion.
CTA Policy Positions
on Supply Chains
and Trade
The cyclical nature of business, costs of
manufacturing and the complexities of global supply
When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research
chains necessitate markets free of overly burdensome
regulations for industry to remain competitive. For
this reason, government should work closely with
the business community to ensure transparency and
efficiency across all aspects of the regulatory and
oversight process.
When crafting new guidelines, regulations and
import/export rules, the responsible agencies must
ensure transparency throughout the entire rule-
making process. A critical piece of that is working
closely with the business community and our allies to
keep regulations and restrictions narrowly defined,
with clear processes in place for stakeholder input,
interagency review and procedures for exclusions
and exemptions.
CTA supports the Administration’s EO on America’s
supply chains with an expectation of transparency and
private sector engagement. CTA president and CEO
Gary Shapiro said, “Technology is the backbone of the
American economy and our global competitiveness,
and we applaud President Biden’s comprehensive,
open approach to reviewing our nation’s supply chain.
Specifically, we are pleased to see the administration
examine our supply chain in the context of recent
world events including COVID-19.”
In contrast, CTA expressed deep concern with the
DoC Interim Final Rule on Securing the Information
and Communications Technology and Services Supply
Chain rules. The ICTS interim final rules have overly
broad definitions that sweep in transactions related
to everything from chips to gaming applications.
CTA urged the DoC “to pause the proceeding to
undertake a comprehensive review of the IFR and
the process that led to it before undertaking any
transaction reviews or prohibitive actions under
Executive Order (“EO”) 13873.”
Certain high-tech subsectors, including the
semiconductor industry, have been recognized as
important for national security. As such, lawmakers
are seeking to design industrial policy aided by
government funding. Although CTA does not endorse
government subsidies to industry, tax incentives
10
offered by the government have been an invaluable
tool for promoting industry growth.
To combat illegal trade practices, or to counter
foreign competition, policies must be derived in
accordance with our international trade obligations
and in concert with our many global trade allies.
This provides rules, guardrails and transparency for
businesses trying to navigate trade actions. Further,
acting with our allies — like entering into trade
agreements — provides a counterbalance to the
questionable trade practices of other global players.
environment where technology’s expansion
is irrefutable, overall capacity level must rise to keep
pace with demand. As the United States rolls out
a plan to secure chip sourcing, the government and
industry must work together to boost domestic
production. This also means the U.S. technology
sector must work closely with trade partners
to stabilize supply. The United States must also
maintain its strength in innovation, working to
improve production automation capabilities that
enhance chip production and reduce lead times.
CTA will continue tracking events and the evolving
market conditions to understand the implications

Closing Thoughts of this critical issue.

The pandemic highlighted an Achilles’ heel, which is

our critical dependence on overseas wafer and fab
companies to fuel several high-tech industries. In an

GLOSSARY: SEMICONDUCTOR CHIP COMPANIES

COMPANY TYPE ROLE/RESPONSIBILITIES EXAMPLE COMPANIES

Manufactures semiconductor equipment

Equipment
used to design and develop semiconductor Applied Materials, LAM Research
Manufacturer
chips and components

Manufactures silicon wafers; receives Taiwan Semiconductor

Foundry or
production contracts from fabless Manufacturing Company, Samsung
Fabrication (or Fab)
companies Electronics, GlobalFoundries

Cuts wafers in individual semiconductor

Test and Assembly devices (dies); tests dies; packages into ASE Group, Amkor Technology
devices

Designs and manufactures chips in their

Integrated Device
own fabrication facility; markets their own Intel, Analog Devices
Manufacturer (IDM)
chips

Designs and markets chips while

Fabless outsourcing manufacturing to a third-party Qualcomm, Nvidia
partner(s)

Sources: Semiconductor Industry Association28; Semiconductor Engineering29; Markets and Markets30

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 11
References
1
Morra, James. US Chip Sector Continues to Grow as Global Sales Rebound in 2020. Electronic Design. February 8, 2021.
2
L apedus, Mark. Semiconductor Engineering: Demand Picks Up For 200mm. Semiconductor Engineering. February 20, 2021.
3
The Struggle Over Chips Enters a New Phase. The Economist. January 23, 2021.
4
US Electric Vehicles Market Set to Register Nearly Five-fold Growth by 2025. Frost & Sullivan. November 19, 2020
5
CTA U.S. Consumer Technology Five-Year Industry Forecast.
6
Belton, Pádraig. Car, phone makers square off over tightening chip supply. Light Reading. February 16, 2021.
7
CTA U.S. Consumer Technology Five-Year Industry Forecast.
8
I ndustrial IoT Connections to Reach 37 Billion Globally by 2025, as ‘Smart Factory’ Concept Realized. Juniper Research.
November 2, 2020.
9
Data Center Market Size to Reach Revenues of over USD 251 Billion by 2026. Arizton Advisory & Intelligence. February 1, 2021.
10
F ogarty, Kevin, and Rasay, Stefen Joshua. Fight for data-center market fuels big semiconductor deals. S&P Global Market
Intelligence. October 29, 2020.
11
2020 SIA State of the Industry Report. Semiconductor Industry Association. 2020.
12
World Semiconductor Trade Statistics (WSTS) Forecast Fall 2020. World Semiconductor Trade Statistics. December 1, 2020.
13
L apedus, Mark, and Mutschler, Ann Steffora. Regaining The Edge In U.S. Chip Manufacturing. Semiconductor Engineering.
October 26, 2020.
14
V
 aras, Antonio, Varadarajan, Raj, Goodrich, Jimmy, and Yinug, Falan. BCG and SIA: Government Incentives and US
Competitiveness in Semiconductor Manufacturing. Boston Consulting Group and Semiconductor Industry Association.
September 2020.
15
Intel CEO Pat Gelsinger Announces ‘IDM 2.0’ Strategy for Manufacturing, Innovation and Product Leadership.
Intel. March 23, 2021.
16
Y
 inug, Falan. Chipmakers Are Ramping Up Production to Address Semiconductor Shortage. Here’s Why that Takes Time.
Semiconductor Industry Association. February 26, 2021.
17
Hitachi. 2. Semiconductor - Metrology and Inspection.
18
J ie, Yang, Tsuneoka, Chieko. Auto-Chip Maker Needs Up to Four Months to Recover From Fire. The Wall Street Journal.
March 30, 2021.
19
Shih, Willy. TSMC’s Announcement Of A New U.S. Semiconductor Fab Is Big News. Forbes. May 15, 2020.
20
V
 akil, Bindiya, and Linton, Tom. Why We’re in the Midst of a Global Semiconductor Shortage. Harvard Business Review.
February 26, 2021.
21
Kulisch, Eric. Boeing 777 freighters bring relief to tight air cargo market. American Shipper. January 3, 2021.
22
R amish, Zafar. TSMC’s Arizona Foundry To Be Aided By $205 Million In City Funds For Infrastructure. Wccftech.
November 19, 2020.
23
T exas blacks out, freezes, and even stops sending juice to semiconductor plants. During a global silicon shortage. The
Register. February 17, 2021.
24
T ing-Fang, Cheng, and Li, Lauly. Taiwan’s chip industry under threat as drought turns critical. Nkkei Asia. February 25, 2021.
25
Securing the Information and Communications Technology and Services Supply Chain. Federal Register. November 27, 2019.
26
Securing the Information and Communications Technology and Services Supply Chain. Federal Register. November 27, 2019.
27
C
 ommerce Department Issues Interim Rule to Restrict Information and Communications Technology and Services Supply
Chain Transactions with “Foreign Adversaries”. Kirkland & Ellis. January 19, 2021.
28
Y
 inug, Falan. Semiconductor Industry Primer: The Stages of Production and Business Models. Semiconductor Industry
Association. February 25, 2021.
29
Integrated Device Manufacturer (IDM). Semiconductor Engineering.
30
Semiconductor Manufacturing Equipment Market with COVID-19 Impact Analysis by Front-end Equipment, Back-end
Equipment, FAB Facility Equipment, Product Type, Dimension, Supply Chain Participant, Region - Global Forecast to 2025.
Markets and Markets.

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 12
About

Consumer Technology Association

As North America’s largest technology trade association, CTA® is the tech sector. Our members are the world’s
leading innovators – from startups to global brands – helping support more than 18 million American jobs.
CTA owns and produces CES® – the largest, most influential tech event on the planet. Find us at CTA.tech.
Follow us @CTAtech.

When the Chips Are Down: Industry Outlook and Policy Response to the Semiconductor Crisis | All rights reserved. | CTA.tech/research 13
The Authoritative Source for Consumer
Technology Market Research

Research@CTA.tech | 703-907-7600

© 2021 Consumer Technology Association (CTA)®. | All rights reserved. | CTA.tech/research