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Empowering America's Semiconductor Supply Chain: A Michigan Perspective

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Chapter 1: Michigan's Semiconductor Industry Overview

Michigan stands as the largest producer of semiconductor-grade polysilicon in the United States. Remarkably, one-third of the global semiconductor chips are manufactured using polysilicon sourced from Hemlock, MI. Despite this significant contribution, many remain unaware of Michigan's crucial position within the semiconductor supply chain. The recent semiconductor manufacturing legislation has been celebrated as a significant achievement, yet its true effect on the Great Lakes State remains to be seen. The repercussions of the Chips Act on Michigan are anticipated to be noteworthy.

This video, titled "The Power of Polysilicon: Hemlock Semiconductor Company Overview," delves into the essential role that Hemlock Semiconductor plays in the industry.

Section 1.1: The Semiconductor Landscape

Semiconductors were first developed in the United States, which continues to be a leader in innovation, holding nearly half of the global market share. However, only 12% of semiconductor assembly occurs domestically. The initial phase of the Semiconductor Supply Chain is DESIGN, predominantly led by American companies. The most significant fabless semiconductor organizations are based in the U.S., including major players like Qualcomm, NVIDIA, Broadcom, and AMD.

Subsection 1.1.1: Understanding Fabless Companies

Fabless companies design microchips but outsource their production rather than maintaining their own manufacturing facilities. This model has led to a significant portion of chip production being contracted to foundries, mainly located in Asia. Astonishingly, almost 40% of the global semiconductor supply is controlled by Chinese companies.

Section 1.2: Congressional Support for the Semiconductor Sector

Recently, Congress approved a substantial $280 billion investment in the semiconductor sector. Notably, the top ten semiconductor firms with fabrication plants reveal that Taiwan Semiconductor Manufacturing Company dominates with a staggering 54% of the global market share. In total, Taiwan, South Korea, and China account for 87% of the market.

Chapter 2: The Future of Semiconductor Manufacturing

As articulated by the CEO of GlobalFoundries, this is a pivotal moment for the United States to enhance its semiconductor production capabilities. The semiconductor supply chain is fundamentally intertwined with the global economy, especially in the digital domain.

Although the U.S. possesses only 10% of the world's lithium reserves, there remains immense potential for growth and innovation within the semiconductor industry. For a deeper understanding, consider reading Jason Miller's insightful blog on whether Intel's investments will lessen our reliance on foreign semiconductors.

Interestingly, if the Great Lakes region were considered a separate nation, it would rank as the third-largest economy globally, with a GDP exceeding $6 trillion. With a continuous upward trajectory, Michigan may indeed emerge as a central hub due to its abundant freshwater resources, which constitute roughly 21% of the world's surface freshwater.

Great Lakes Economy: Growth Engine of North America

Dr. Sime (Sheema) Curkovic, Ph.D.,

Professor, Operations/Supply Chain, Lee Honors College Faculty Fellow

Western Michigan University, Haworth College of Business

Kalamazoo, MI 49008–5429 | 269.267.3093 | [email protected]

The Western Way: “Better, faster, cheaper” www.wmich.edu/supplychain

WMU: #1 in MI for earnings by graduates

Sample Lectures: What is SCM?

WMU…One of nation’s best undergrad SCM programs (Gartner); 2nd in technology (SoftwareAdvice); 2nd in top global talent (SCM World)

#supplychain #semiconductor #fablab #supplychainmanagement #chipshortage

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