Expanding Semiconductor Capital Investments in the US

In the most recent KPMG Global Semiconductor Industry Outlook survey, 61 percent of US semiconductor leaders said they plan to increase capital spending over the next year. They also identified making the supply chain more flexible and adaptable to geopolitical and other disruptions as their top strategic priority over the next 3 years. These perspectives reinforce the ongoing trend of increasing semiconductor manufacturing in the US. 

However, semiconductor executives face unprecedented challenges and opportunities in making significant capital investments within the US. Trade policies, geopolitical uncertainties, and shifting supply chain strategies are impacting businesses, industries, and individuals. Critical decisions regarding scaling, reshoring, or exploring new market opportunities are vital to remain competitive. Developing and implementing a strategy for capital investments in this global market requires careful assessment of:

• Supply chain strategy: Evaluate strategies to enhance operational efficiency, reduce costs, improve resilience and flexibility, and mitigate risks within your supply chain.
• Investment analysis: Assess different investment strategies and analyze investment financials and risks (including tax considerations) to assess impact on ROI.
• Production location analysis: Evaluate site locations for expansion of production capacity, including considerations such as state & local incentives, funding and financing opportunities, workforce availability, access to transportation and energy infrastructure.
• Production facility stand-up: Plan facility development and execute project stand up, including activities such as contracting and procurement, energy supply, project controls, and executive project management.

For a more comprehensive explanation of these strategies, download the guide.