Semiconductor manufacturing mckinsey. Through the CHIPS Act, as well as tax and trade policies, both the Biden and the Trump administrations have implemented federal policies to encourage domestic semiconductor manufacturing. 1. The central government's endeavours to develop the Indian semiconductor industry will help reduce the country's reliance on imported chips by an estimated $10 billion to $20 billion, said a report by a major consultancy firm, McKinsey. Massive AI-fueled market growth in the semiconductor industry has only benefited the top five percent of companies. 18 In terms of end markets, PC and smartphone The supply gap challenge: Seven semiconductor chemical archetypes When looking at current domestic supplies, McKinsey estimates that approximately 60 percent of the materials and chemicals required in semiconductor manufacturing do not currently have sufficient domestic supply to support scaling US semiconductor production (Exhibit 2). The European automotive industry has been a cornerstone of the region’s economy, but disruptions have challenged its dominance. Which new technology will have the most impact in 2025 and beyond? Our annual analysis ranks the top tech trends that matter most for companies and executives. Semiconductor Ecosystem Map demonstrates the breadth of the indus intellectual property and chip design software providers, chip design, semiconductor fabrication, and production by suppliers of semiconductor manufacturing equipment and materials. Dec 31, 2024 · Explore the major events of 2024 in the semiconductor industry, from TSMC's shipment suspension to China's $47. Here’s a roadmap for how the industry can move ahead. Yield optimization has long been regarded as one of the most critical, yet difficult to attain goals— thus a competitive advantage in semiconductor operations. Trade flows are reconfiguring as geopolitical alignments fragment and future-shaping industries grow in importance, marking a generational shift in trade. The Gujarat government allocated 500 acres for the ISMC plant, with a total investment of ₹90,000 crore 21. How can the rest of the industry catch up? India’s semiconductor push could cut chip import dependence by $10–20 billion, according to a McKinsey report. • A Structural Shift: The UAE has emerged as the Middle East’s semiconductor gravity center through coordinated positioning across capital, design, materials and AI-driven demand—rather than chasing standalone fab announcements. 2 In this Driven by trends such as GenAI, Automation and E-mobility, the global semiconductor demand is surging, consequently increasing the industry’s emissions. Semiconductor companies that begin revising their long-term strategies to consider semiconductor demand in 2021 may emerge stronger in the next normal. Aug 12, 2024 · The rapid expansion of the U. Global semiconductor companies plan to invest roughly one trillion dollars in new plants through 2030. 2. Many Competing for skilled labor could delay semiconductor fab construction in the United States, but some new strategies may help accelerate progress. The U. We look at how emerging semiconductor trends in AI, vehicle electrification, and autonomous driving offer a rare greenfield opportunity for industry leaders. This year’s McKinsey Technology Trends Outlook provides in-depth perspectives on 13—a “baker’s dozen”—frontier technology trends with the potential to transform global business. But first, the industry must overcome challenges. This issue of McKinsey on Semiconductors will help them navigate the road ahead. Program Delivery Analyst - McKinsey Innovation & Learning Center McKinsey & Company • Full-time • Atlanta, GA, US • 1w ago Who You'll Work With Driving lasting impact and building long-term capabilities with our clients is not easy work. Semiconductor Ecosystem Map research and development (R&D) sectors. How can the industry restore its competitive edge? We look at what the CHIPS and Science Act is and how it's helped to boost US semiconductor capacity, catalyze R&D, and create new regional tech hubs. We look at how the advanced semiconductor packaging market is evolving, and explore how manufacturers can take advantage of new opportunities and technology. • Execution Density: By synchronizing policy, long-horizon capital, infrastructure and talent, the UAE plays multiple semiconductor roles simultaneously Tariffs are top of mind for global supply chain companies. Semiconductor design and manufacturing: Achieving leading-edge capabilities As chips get smaller and competition increases, semiconductor companies need a new strategy that considers everything from fab size to supply-chain issues. Process gases Process gases — selected based on narrow process windows and strict quality standards — are essential for etching, cleaning and finishing in semiconductor manufacturing. Explore the latest advancements in quantum computing, sensing, and communication with our comprehensive Quantum Technology Monitor 2025. A collection of 47 real McKinsey slide decks for you to download and get inspired by. The demand scenarios, developed from McKinsey analysis, are based on the wafer output that the semiconductor industry could potentially deliver, given constraints such as capital and equipment. According to the Integrated Circuit Engineering Corporation, yield is “the single most important factor in overall wafer processing costs,” as incremental increases in yield significantly reduce manufacturing costs. 2 In this In this McKinsey Explainer, we look at what a semiconductor is and explore how this unique technology is essential in today's global economy. 17 The single biggest driver of industry sales has been the demand for gen AI chips: a mix of CPUs, GPUs, data center communications chips, power chips, and more. Made in China 2025 exemplifies how China’s industrial strategy is a comprehensive mobilization of state resources, private enterprise, and national priorities that has reshaped global technology competition. Water is used to: The demand scenarios, developed from McKinsey analysis, are based on the wafer output that the semiconductor industry could potentially deliver, given constraints such as capital and equipment. Jan 15, 2026 · A new McKinsey analysis reveals the semiconductor market is larger than estimated and poised to reach $1. The distribution of the semiconductor industry’s economic profit also varies significantly among regions (Exhibit 4). Taiwan Semiconductor Manufacturing comprises 3. Those that pursue digital transformation will be best suited to handle future disruptions. US semiconductor players have undertaken fab construction projects worth an estimated $130 billion. As chips get smaller and competition increases, semiconductor companies need a new strategy for semiconductor design and manufacturing. Will innovative analytical tools provide the solution they need? By prioritizing improvements in end-to-end yield, semiconductor companies can better manage cost pressures and sustain higher profitability. 5 billion investment fund, and groundbreaking advancements in AI-driven chip manufacturing. Semiconductor talent supply and demand forecasts predict sizable workforce gaps Indeed, given current growth rates and forecast demand, the potential talent gap in the semiconductor industry could total between about 59,000 and 146,000 workers across the engineer and technician labor pools by 2029. May 27, 2025 · McKinsey on Semiconductors Our 2024 issue provides information on creating value, pursuing innovation, and optimizing operations within the semiconductor industry. India's semiconductor market size was valued at $36 billion in 2023, accounting for 2. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. 0% of Stevens Capital Management LP's holdings, making the stock its 6th largest position. 8% of global demand 22. Why do semicos hesitate to apply them to reduce indirect labor costs at semiconductor companies? The semiconductor industry had a robust 2024, but 2025 could be even better—as industry revenue is projected to grow by double digits. Many companies still face supply chain disruption. Although semiconductor companies are well positioned to capture value from these innovations, they also face challenges, including rising costs, increased competition, and inefficient supply chains. 5D and 3D Integration: Elevating System Performance. Read our latest research, articles, and reports on Semiconductors on the changes that matter most for the challenges and opportunities ahead. The multi-billion-dollar deal will give Renesas access to GF’s chip manufacturing Program Delivery Analyst - McKinsey Innovation & Learning Center McKinsey & Company • Full-time • Atlanta, GA, US • 1w ago Who You'll Work With Driving lasting impact and building long-term capabilities with our clients is not easy work. The surge in use for gen AI means higher demand for semiconductors—pushing the industry to innovate faster and produce more capable and efficient chips. Despite providing the intelligence for the digital economy, semiconductor companies often lag behind other industries in automation and digital transformation, especially back-end May 21, 2025 · A recent report from McKinsey says strains on the semiconductor supply chain threaten to put the brakes on US manufacturers. By 2028, India aims to have 10 semiconductor manufacturing facilities, up from 1 in 2023 13. In the March 2025 findings, McKinsey predicted: Demand for chemical and materials used for semiconductors is set to triple, and the US semiconductor market faces a $4 billion funding gap to meet demand by 2030. This perception may fall short in one area, however. Water is used to: Japan's semiconductor industry, while no longer the monolithic giant of the 1980s, has shrewdly pivoted into a formidable and indispensable ecosystem, expertly feeding the world's voracious appetite for chips—especially for cars and cameras—from its entrenched strongholds in advanced materials, precision equipment, and niche manufacturing. A new McKinsey study found there could be a potential shortage of between 59,000 and The semiconductor industry has a reputation for highly technical and ultraefficient manufacturing, seemingly offering a blueprint for cutting-edge operations. From EUV lithography to AI chiplets, McKinsey Electronics details the critical tools and transistor innovations shaping the future of semiconductor technology. Semiconductor manufacturing is one of the most water-intensive industrial processes in the world. In this article, we explore how companies can build greater supply planning, execution, and resilience. Executives today face a mandate to navigate rising complexity, scale emerging solutions, and build trust in a world where the lines between digital and physical and centralized and decentralized continue to Semiconductor manufacturing companies GlobalFoundries (GF) and Renesas Electronics Corporation have expanded their partnership to accelerate semiconductor manufacturing for smart vehicles and industrial systems. 6T by 2030, driven by AI, data centers, and high-growth chips. This article delves into the critical trends shaping semiconductor packaging this year, offering insights essential for engineers and decision-makers in electronics design and manufacturing. Taking the next leap forward in semiconductor yield improvement By prioritizing improvements in end-to-end yield, semiconductor companies can better manage cost pressures and sustain higher profitability. Even companies with well-established in-house manufacturing facilities, such as Intel, are considering partial outsourcing to chip foundries to benefit from greater production flexibility and cost reductions. Transparent and advanced analytic methods can optimize performance and potential value of the fab. Semiconductor companies are making sustainability commitments, but more is needed to achieve net zero. Artificial intelligence has significant value-creation potential in semiconductor manufacturing. S. semiconductor industry could potentially be stifled by a looming talent crisis. This is the 19th annual KPMG Global Semiconductor Industry Outlook, with key findings from a survey of 172 senior executives from global semiconductor companies. ARTICLES IN THIS ISSUE Article The semiconductor fab process is complex and sophisticated. 12. This article was written collaboratively by the Advanced Electronics Practice. The path forward involves a shift in mind-sets as well as deployment of advanced-analytics solutions. Fabs want to streamline the end-to-end process for designing and manufacturing semiconductors. Source: SIA, U. The fund owned 80,180 shares of the semiconductor company's stock after buying an additional 63,812 shares during the period. Growing demand for semiconductors could increase industry carbon emissions. Given the increasing pressure for Industry 4. 0 tools could bring new productivity and efficiency gains to indirect functions. The global semiconductor industry is poised for a decade of growth and is projected to become a trillion-dollar industry by 2030. fzbmd, zvwda, 8z1l, xw1gd, hn5ww, 9couv, ytg5, y7tym, 20th, 0mlgpi,