The shortage of semiconductors continues and is expected to continue through 2024. Semiconductors are an integral part of modern electronics, and they power everything from smartphones and laptops to cars and airplanes. These tiny chips are made of materials such as silicon, germanium, and gallium arsenide that can conduct electricity under certain conditions but not others, allowing them to act as a switch or amplifier.
How do semiconductors work?
Semiconductors work by manipulating the flow of electrons through the material, using a process called doping. By adding impurities such as boron or phosphorus to the semiconductor, manufacturers can create regions that have an excess or a deficit of electrons, known as p-type and n-type regions, respectively. When these regions are brought into contact, the resulting junction creates a diode that can control the flow of current.
In more complex chips, known as integrated circuits, multiple diodes and other components are connected together to perform specific functions, such as storing data or processing signals. These chips are etched onto wafers of pure semiconductor material using photolithography, a process that involves shining light through a mask to create patterns that can be etched into the surface.
Despite the importance of semiconductors, there is currently a global shortage of chips that has affected a wide range of industries, from consumer electronics to automobiles. The shortage has been caused by a combination of factors, including increased demand due to the pandemic, disruptions to supply chains, and a lack of investment in new manufacturing capacity.
The shortage has been particularly acute in the automotive industry, which relies on semiconductors for a variety of systems such as anti-lock brakes and infotainment systems. As a result, many car manufacturers have had to cut production or temporarily close factories.
In terms of top US manufacturers of computer chips, there are several companies that stand out. Intel, based in Santa Clara, California, is one of the largest semiconductor manufacturers in the world, and has been a major player in the industry for decades. Other notable companies include Qualcomm, AMD, and Nvidia, which specialize in chips for mobile devices, servers, and graphics cards, respectively.
However, despite the strength of these companies, other countries such as Taiwan and South Korea have remained ahead of the United States in semiconductor manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC), for example, is the world’s largest contract manufacturer of chips, and has played a key role in driving innovation in the industry. South Korea’s Samsung Electronics is another major player, with a strong focus on memory chips and advanced manufacturing processes.
Why isn’t the United States a leader in this industry?
Well, Intel is hardly small potatoes – the United States does produce a fair amount as do other countries. However, when it comes to the powerhouse producers from South Korea and Taiwan, one reason why other countries have been able to maintain an edge in this area is their willingness to invest heavily in research and development, as well as in building new manufacturing facilities. In addition, many countries have implemented policies to support their domestic semiconductor industries, such as tax incentives and subsidies.
Semiconductors are a critical component of modern electronics, and the current shortage has highlighted the importance of investing in new manufacturing capacity. While the United States has several leading semiconductor companies, other countries have remained ahead in terms of innovation and manufacturing prowess. To stay competitive, the US will need to continue investing in research and development, as well as in policies to support its semiconductor industry.
Here are some documents pertaining to semiconductor manufacturers in the United States currently in the RealDealDocs database:
Intel Corp 8-K
Purchase And Contribution Agreement INTEL
Qualcomm Inc/De 8-K
Master Collaboration Agreement for VEONEER, Qualcomm Technologies
Nvidia Corp Exh 21 List Of Subsidiaries
Image courtesy of Michael Dziedzic