Investing.com – Growth projections in the U.S. chip industry are promising, driven by proactive policies and a renewed commitment to innovation and technological competitiveness globally, according to a report released this Wednesday, May 8 , by the Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).
The report notes that the chip industry has strategic importance with notable growth projected in semiconductor manufacturing capacity due to growing global demand.
Through watchlists InvestingProwe compare the main semiconductor production companies in the United States, in which you can see at a glance the upward potential that this industry offers for investors.
The comparison included Intel (NASDAQ:), NVIDIA (NASDAQ:), Advanced Micro Devices (NASDAQ:) and Arm Holdings ADR (NASDAQ:), all of which coincide with offering profit potential for investors based on the fair value given by the analysts of InvestingPro.
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Intel’s 33.8% upside potential stands out, with an Undervalued label and a fair value calculated at $40 per share. AMD is next, with an upside potential of 25.4%, labeled as Undervalued and an intrinsic value calculated at $193.
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For its part, Nvidia has a fair value of $1,000 per share, so it has an earnings potential of 10.3%, with a Fair Price tag according to analysts at InvestingPro. In the case of ARM (LON:), an increase of 0.5% is expected towards a target price of 0.5%, also with a Fair Price tag.
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What are the growth prospects for the semiconductor industry in the US?
The industry’s optimistic forecast is based on incentive policies, particularly the CHIPS and Science Act (CHIPS), enacted in 2022, which has spurred significant investments in the country’s technology industry.
According to the report titled “Emerging Resilience in the Semiconductor Supply Chain,” the United States is expected to triple its domestic semiconductor manufacturing capacity by 2032, representing a 203% increase since the enactment of the CHIPS Act. This projected growth is the highest in percentage terms globally during that period, marking an important milestone for the US technology industry.
One of the highlights of these projections is the projected increase in US participation in advanced logic manufacturing (below 10nm). It is estimated that by 2032, the United States will increase its share in this segment to 28% of global capacity, compared to 0% in 2022. Additionally, the United States is projected to capture approximately 28% of global capital expenditure (capex). ) between 2024 and 2032, positioning itself as the second largest recipient of investments in semiconductors, only behind Taiwan.
These projections stand in stark contrast to the previous trend, where the United States had seen a modest 11% increase in semiconductor manufacturing capacity over the previous decade (2012-2022), ranking last among all major chip-producing regions. important.
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The report also highlights the positive impact of the CHIPS Act on the US technology industry, highlighting that without this legislation, the US share of global chip manufacturing would have decreased significantly by 2032.
Rich Templeton, Chairman of the Board of Directors of Texas Instruments (NASDAQ:) and President of SIA, highlighted the importance of effective policies, such as the CHIPS and Science Act, to stimulate additional investments in the semiconductor industry in the United States.
Despite these advances, the report emphasizes the need to continue additional policies to address remaining vulnerabilities in the semiconductor supply chain and solidify the United States’ position in key areas such as advanced logic, chip design, and manufacturing. of Equipements. It highlights the importance of expanding the STEM talent pipeline, investing in scientific research, promoting free trade, and expanding the critical incentives provided by the CHIPS Act.
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