The global economy’s future will be powered by leading-edge semiconductors. As geopolitical tensions rise, countries and companies are moving to diversify production beyond Taiwan and South Korea and bring manufacturing closer to home. In this context, foreign direct investment (FDI) is emerging as a key driver of global capacity growth. In fact, FDI could bolster the United States’ capacity, potentially making it the second-largest producer of leading-edge semiconductors by the early 2030s, Senior Partner Olivia White and colleagues note. However, the reliance on global supply chains for raw materials and manufacturing equipment remains a critical factor in the industry’s future stability.
https://www.mckinsey.com/featured-insights/week-in-charts/fdi-fuels-chip-shift
