Recent Release | 19 May 2021
Chipping In: The U.S. Semiconductor Industry Workforce and How Federal Incentives Will Increase Domestic Jobs
Economic Consulting Team
Oxford Economics
With its origins in the latter part of the 20th century, the semiconductor industry has grown to become one of the most important segments of the global economy. Today, semiconductors are found in nearly every electronic device, including phones, cars, and appliances. Semiconductors enable nearly every industry, reflected by global sales of over $440 billion in 2020 alone.
Today, semiconductor companies are producing more chips than ever before. The success and growth in computers and software have subsequently helped to drive growth in the semiconductor industry. The U.S. semiconductor industry is substantial, directly contributing $246.4 billion to U.S. GDP and directly employing over 277,000 workers in 2020. However, the economic contribution of the semiconductor industry extends far beyond fabrication facilities (fabs) or research facilities where its products are designed and manufactured. The strong demand for all types of chips facilitates the need for a broader domestic support ecosystem including manufacturing equipment, materials, design services, testing labs, and R&D activity. This ecosystem creates activities that generate additional economic value throughout the U.S. economy.
For this study, Oxford Economics has quantified the economic contribution of the U.S. semiconductor industry by using an economic impact analysis at the national level in the U.S. This technique highlights the importance of the semiconductor industry to the U.S. economy in terms of jobs, wages, and GDP.
About the team
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project included:
Related Services
Post
From Farm to Table: The Philippine Agri-Food Economy in 2025 and the Road to Competitiveness
This report assesses the Philippines’ agri-food system, from agricultural production and food and beverage (F&B) manufacturing, to the wholesale, retail, and hospitality distribution networks that bring F&B to market. We quantify the economic contribution of the local agri-food sector, document the challenges faced by Philippine agri-businesses due to the tightening operating environment and shifting trade patterns, and outline a practical path to navigate these headwinds.
Find Out More
Post
Economic benefits quantum computing can bring to Sussex and Greater Brighton
This report focuses on the quantum computing sector in Sussex and Greater Brighton, and its potential contribution to the South East and wider UK economy.
Find Out More
Post
Policy in the driving seat
Asia remains one of the world’s most dynamic growth regions—but the forces shaping business outcomes are changing.
Find Out More
