As the global semiconductor market continues to evolve, AZoNano takes a closer look at the US semiconductor companies that are leading the industry in 2023.
Image Credit: Azlan Stock/Shutterstock.com
US Semiconductor Companies: A History
The US semiconductor market began to emerge in the mid-twentieth century, when just a few US semiconductor companies operated in the industry, including Texas Instruments, National Semiconductor, and Intel Corporation.
The market began to flourish in the 1960s and 1970s alongside the increasing demand for electrical devices, which were becoming more commonplace in American homes and workplaces at this point. The home computer was launched in 1977, and became increasingly popular throughout the 1980s, further pushing demand.
Growth in the market continued throughout the 1900s and 2000s, with US semiconductor companies such as Texas Instruments and Intel Corporation maintaining their strong position in the industry.
More recently, China has emerged as an important player in the global semiconductor market; while this poses a challenge to the US market, it has remained competitive and innovative.
US Semiconductor Companies: The Challenges
The most significant challenge facing US semiconductor companies is the growth of China as a major player in the global market. Chinese manufacturers are in competition with US semiconductor companies. In recent years, imports of China’s semiconductors into the US were growing year-on-year until 2022, when the US Commerce Department’s Bureau of Industry and Security announced limits on China’s ability to import advanced semiconductors.
US Semiconductor Companies: Intel Corporation
Of all the US semiconductor companies currently operating in the market, Intel has been among the most successful. For decades, Intel has remained a dominant player out of all US semiconductor companies, with its share of the global market recently estimated to be around 10%.
The company is one of the few US semiconductor companies to focus its efforts on building and buying manufacturing facilities in the US, rather than outsourcing manufacturing.
US Semiconductor Companies: Advanced Micro Devices (AMD)
AMD is currently one of the most notable US semiconductor companies. Its chips are used in two models of Tesla, 5G cell towers, the NASA Mars Perseverance land rover, and the fastest supercomputer in the world.
In the 1980s, AMD was manufacturing chips as a second-source supplier for Intel. After that, AMD reverse-engineered Intel’s chips, designing its own that were compatible with Intel software. While Intel sued AMD, the settlement allowed AMD to continue designing these chips in a move that helped personal computers become more affordable for regular consumers.
Today, AMD is one of the most influential US semiconductor companies in the market. It is estimated that AMD holds around 4% of the global semiconductor market.
US Semiconductor Companies: Texas Instruments Incorporated
Texas Instruments has been around since the birth of the semiconductor market. It is one of the US semiconductor companies considered pivotal for the semiconductor revolution.
While based in Dallas, Texas, the company is one of numerous US semiconductor companies that has moved some of its production overseas. The company has a strong foothold in China, where a lot of its semiconductor production takes place. Texas Instruments has also recently expanded its production capacity in the US with its recent opening of a new plant known as RFAB2 in Richardson, Texas.
The company currently holds an estimated 3.1% of the global semiconductor market.
US Semiconductor Companies: Micron Technology, Inc.
Micron Technology is one of the biggest US semiconductor companies. The company, based in Boise, Idaho, is reportedly planning to expand its manufacturing capacity by setting up new manufacturing locations in India.
On the other hand, the company also faces a potential loss in sales due to a recent ban from China. The US semiconductor producer will not be allowed to be involved in key infrastructure projects due to perceived security risks.
The company holds one of the highest market shares of US semiconductor companies - an estimated 4.6% of the global semiconductor market.
US Semiconductor Companies: Astera Labs
There are many promising start-ups in the US that are currently growing to potentially become some of the most influential US semiconductor companies of the future. One such start-up is Astera Labs. Founded in 2017, the San Francisco-based company recently reached a valuation of £3.15 billion. In five years, the company has developed three products to enable higher bandwidth, better connectivity and increased memory capacity. The company is looking to accelerate growth after a promising start in the US semiconductor industry.
US Semiconductor Companies: The Future
The future is bright for US semiconductor companies. While they were hit by the COVID-19 pandemic and face the challenge of competition from overseas, much growth is anticipated in the US market in the coming years.
Future innovation in the market will likely see US semiconductor companies, big and small, responding to the demand for increasingly smaller and lighter to use in new consumer electronics as well as cars and medical devices.
As with all industries, sustainability will also be a key trend in the future of the US semiconductor market. Closed economies and sustainable manufacturing processes will likely be increasingly adopted as US semiconductor companies strive to meet consumer expectations.
References and Further Reading
Skores, A. (2023). Go inside Texas Instruments' newest fab, where chips powering the digital world are born [online]. Tech Explore. Available at: https://techxplore.com/news/2022-12-texas-instruments-fab-chips-powering.html
Hoskins, P. (2023). China bans major chip maker Micron from key infrastructure projects [online]. BBC News. Available at: https://www.bbc.co.uk/news/business-65667746
Waters, R. (2023). Can Intel become the chip champion the US needs? [online]. The Financial Times. Available at: https://www.ft.com/content/8fd0bb2b-429d-4699-a6d4-aac20e01641f
Semiconductor companies market revenue share worldwide from (2008 to 2022) [online]. Statista. Available at: https://www.statista.com/statistics/266143/global-market-share-of-leading-semiconductor-vendors/
Shane Snider (2022). The 10 Hottest Semiconductor Start-up Companies Of (2022) [online]. CRN. Available at: https://www.crn.com/news/computing/the-10-hottest-semiconductor-startup-companies-of-2022/3?itc=refresh
Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.