{"id":594242,"date":"2023-05-30T06:52:44","date_gmt":"2023-05-30T13:52:44","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=594242"},"modified":"2023-05-30T06:52:44","modified_gmt":"2023-05-30T13:52:44","slug":"semiconductor-production-expansion","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/semiconductor-production-expansion","title":{"rendered":"US Manufacturing Growth Demands More Than Funding Alone"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[281,22772,238001,1331],"department":[476812],"wherenext-category":[],"industry":[],"class_list":["post-594242","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-location-intelligence","tag-manufacturing","tag-site-selection","tag-supply-chain","department-business-growth"],"acf":{"short_description":"The CHIPS Act has spurred a hunt for regions and towns that can support the capital-intensive demands of semiconductor production fabs.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"America\u2019s CHIPS and Science Act<\/a> was designed to ignite a renaissance in the US semiconductor industry. But before President Biden\u2019s CHIPS Act can realize its vision, industry executives must determine the best locations to support the demands of semiconductor fabrication plants, known as fabs."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Article snapshot:<\/strong> Flush with federal funding, semiconductor firms know there\u2019s more to siting a manufacturing facility than just capital. Geographic factors like the availability of water, clean energy, and skilled workers weigh heavily, and location analysis will be key.","snippet":""},{"acf_fc_layout":"content","content":"The centerpiece of the 2022 landmark bill is a $52.7 billion investment in subsidies to encourage manufacturing of microchips, which power nearly every form of modern technology, from supercomputers to smart wearables.\r\n\r\nFabs require abundant reserves of energy and water, a specialized labor force, and access to rare-metal supply chains. Chipmakers must balance these inputs against concerns about environmental impacts and fierce competition for technical talent.\r\n\r\nSophisticated software like geographic information system (GIS) technology will be key to guiding this nationally significant site selection process. Armed with the insights of GIS, known as location intelligence<\/a>, manufacturing executives can expedite the search for locales that will support long-term growth.\r\n

A New Map of US-based Semiconductor Production<\/strong><\/h3>\r\nIn recent years, the concentration of fabs in Southeast Asia has created supply chains<\/a> that can be vulnerable to climate volatility and geopolitical tensions. Onshoring chip production will result in greater resilience, proponents say.\r\n\r\nTexas and Arizona are among the leading candidates<\/a> for new fab facilities, thanks to production hubs that already thrive in those states. But Ohio, New York, New Mexico, Oregon, and other states are also competing to bring chip manufacturing to their economies<\/a>.\r\n\r\nThe choice of where to site fabs will depend on more than tax subsidies. Executives making location decisions must weigh several factors. When it comes to resources, water availability is near the top of the list. An individual fab can use tens of millions of gallons per day<\/a> for production, cooling, and cleaning. In Arizona, the prevalence of droughts<\/a> is already on the radar of firms like Intel and TSMC, which plan to add chip manufacturing capacity in the state.\r\n\r\nAcross the manufacturing industry, firms are turning to GIS-based maps<\/a> to monitor current water availability for new infrastructure and model how climate change might affect supply in 10 or 20 years. The operational intelligence provided by this geographic context can also help identify sources of water waste or opportunities for reuse.\r\n\r\nEnergy will be another major consideration for chipmakers. Large fabs can use up to 100 megawatts of power every hour<\/a>\u2014outstripping the energy demands of many oil refineries and car factories. At the same time, manufacturing executives are increasingly sensitive to energy efficiency, as their end users and customers push toward net-zero goals. Even before construction begins, companies are using GIS models to estimate the carbon emissions of new buildings by interlacing data on power grids, materials, and supply chains<\/a>. With energy-related emissions differing by as much as 80 percent between cities, location analysis will play a key role in siting fabs to take advantage of the clean energy transition<\/a>.\r\n\r\nWorkforce analysis is a major component in determining new chip-making locations. There are currently around 100,000 employees<\/a> who work in semiconductor production and circuit manufacturing in the US. That number might need to double to meet the demands of the projected new fabs.\r\n\r\nWith location-aware dashboards<\/a>, executives can compare pay rates across dozens of cities and determine the most competitive salaries for semiconductor technicians and processors. Location intelligence gleaned from smart maps can highlight talent pipelines like universities or technical schools, and pinpoint regional labor pools whose employees might be reskilled for fab work.\r\n

Making the Future of Innovation Geographically Equitable<\/strong><\/h3>\r\nGeography was front of mind for the authors of the CHIPS Act and other recent federal legislation, not only in boosting domestic production, but ensuring the equitable spread of innovation<\/a> and economic growth<\/a> across the country.\r\n\r\nAnother part of the bill provides $10 billion for the creation of 20 innovation hubs<\/a> in places that aren\u2019t already leading technological centers. Private-public partnerships of industry-leading companies, research universities, and other organizations can apply to bring these centers to their region.\r\n\r\nThe Department of Commerce will favor small rural communities and low-population areas when siting and funding the innovation hubs. GIS maps<\/a> can be effective tools for communicating why a town fits the requirements for federal grants.\r\n\r\nIt will take time to determine the true impacts of the CHIPS Act. But even at this early stage, it\u2019s clear that geographic context will play an important role in steering the next generation of domestic chipmakers toward success."}],"references":null},"yoast_head":"\nSemiconductor Production Gains Funding Boost, Thorny Questions<\/title>\n<meta name=\"description\" content=\"In the quest to reclaim America\u2019s role in semiconductor production, new federal money comes with complicated geographic questions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/semiconductor-production-expansion\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Manufacturing Growth Demands More Than Funding Alone\" \/>\n<meta property=\"og:description\" content=\"In the quest to reclaim 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