Rising geopolitical tensions, changing policies, and manufacturing bottlenecks create a whole series of new opportunities for reshoring manufacturing activities.
Changing policies are not new, but the frequency upon which policies are amended points clearly towards revitalizing local manufacturing with shorter and more secure supply chains, especially for semiconductors and the like. In 2022 alone, the US administration has voted budgets in excess of $650 billion which aim to stimulate research and innovation in the fields of energy efficiency, climate change, and semiconductors. It is estimated that various initiatives will create more than 350’000 new jobs.
Today, only about 18% of all semiconductors are manufactured in developed markets! With the various initiatives going on in Europe and the United States, it is expected that roughly 40% of all semiconductors and about 95% of all high-end chips are expected to be manufactured in DM.
Most notable opportunities are centered around these companies:
- IBM: Invests $20 billion in quantum computing
- Micron: Over the next 20 years, the company expects to invest over $100 billion in new foundries, creating more than 9’000 high-paying opportunities.
- Intel: Commits $20 billion to a new foundry in Ohio with over 3’000 job opportunities.
- Samsung: a) New facility to produce 2nm process technology by 2025 and 1.5 by 2027; b) Commits annually over $10 billion in new facilities in Europe and the United States.
- Qualcomm and GlobalFoundries: The joint-venture invests $4.2 billion in new foundries.
- Volkswagen and Siemens: The companies join forces to address broader issues of EV; together they commit over $450 million.
Onshoring is not only about semiconductors but also about automation and robotics, materials, real estate, utilities, and last but not the least consumer dictionaries. The full list of companies of interest to us can be downloaded here (scroll down to tap: “Our current outlook on the market”)