Scale Matters: Understanding The Economics of Global Semiconductor Innovation

Semiconductors power the modern world—and producing them is a high-stakes, high-cost game. Building a cutting-edge fab can top $30 billion, while designing a single chip costs hundreds of millions. To thrive in this fiercely competitive industry, companies must scale up to fund these massive investments and access global markets to recover costs and fuel future innovation. The dominance of leading semiconductor firms isn’t a sign of anti-competitive behavior, but rather a reflection of the unique economics driving this sector. Policymakers must grasp these dynamics to craft policies that sustain U.S. leadership in this critical industry.

Watch now for an expert panel elucidating the innovation economics of the global semiconductor industry, exploring how the industry is capitalized, and exploring the landscape of global semiconductor competition and policy in the year ahead.