Enhancing the Competitiveness of the U.S. Semiconductor Industry

Abstract

This thesis examines the case of the U.S. semiconductor industry. It addresses the question: “To what extent can the U.S. semiconductor industry enhance its competitiveness?” The case is assessed in light of intensifying global competition and politization, particularly from China, Taiwan, South Korea, Japan, and Europe. The analysis is based on four research questions and uses a tailored competitiveness framework designed for the semiconductor industry. This framework includes seven key factors: sales, technology, R&D, resilience, talent, ecosystem, and production capacity. The analysis also considers broader influences such as supply chain vulnerabilities, macroeconomic conditions, and geopolitical risks. Findings show that the U.S. semiconductor industry is highly competitive in global sales, R&D, and technology, supported by a strong ecosystem. However, its competitiveness is weakened by limited domestic manufacturing capacity, supply chain fragility, and labor shortages. Adverse macroeconomic conditions and geopolitical interferences further threaten performance. Addressing these issues – through risk mitigation and talent management strategies – could significantly enhance the competitiveness of the industry.