SIA Urges Stronger Policy Support for U.S. Semiconductor Competitiveness
Overview
The Semiconductor Industry Association (SIA) released the 2026 edition of its annual report on the state and challenges of the U.S. semiconductor industry. The report highlights U.S. companies’ global market advantage and expanding investment, while identifying the scale of research and development spending, supply chain vulnerabilities, and China’s overproduction of mature-node semiconductors as challenges. It presents policy priorities in seven areas, including strengthening the domestic industrial base and working with allies.
Key points
- SIA said domestic investment, research and development, and workforce development need to advance together with efforts to secure market access with allies and strengthen supply chain resilience.
- The report highlights U.S. companies’ market advantage and expanding investment, while also pointing to challenges related to research and development spending and supply chains.
- The policy priorities cover seven areas: the industrial base, tax policy, public research, workforce, cooperation with allies, export controls, and environmental and energy regulation.
Overview
On July 27, the Semiconductor Industry Association (SIA) released the 2026 edition of its annual report, "State of the U.S. Semiconductor Industry," which summarizes the state and challenges of the U.S. semiconductor industry.
According to the report, U.S. companies accounted for 53.4% of global semiconductor sales in 2025, their highest market share since 1984. SIA said U.S. companies hold advantages across a broad range of fields, including research and development, semiconductor design, and advanced manufacturing.
Impact
SIA said semiconductor manufacturing has been affected by Chinese export restrictions on gallium, germanium, indium phosphide, and rare-earth-related products, as well as supply constraints on naphtha and helium linked to the situation around the Strait of Hormuz.
SIA said China’s overproduction of mature-node semiconductors is pushing down market prices and distorting the market.
Details
U.S. semiconductor companies’ research and development spending was 76.8 billion in 2025, up 10.3% from the previous year, but below China’s combined public and private spending. SIA highlighted the importance of U.S. government support for research and development and tax measures.
From 2020 to 2025, more than 160 semiconductor-related investment plans, totaling over 770 billion, were announced across 30 U.S. states. They cover the entire supply chain, including not only fabs but also back-end processes, manufacturing equipment, materials, and research and development.
The seven areas identified by SIA are continued support for manufacturing and research and development investment; maintaining a competitive tax system; expanding public investment in research and development; workforce development and the recruitment of highly skilled talent; expanding demand and strengthening supply chain resilience with allies; careful export controls and technology restrictions coordinated with allies; and streamlining environmental and energy regulatory procedures.