The United States has been a leader in microchip design with dominant companies like Nvidia, Intel and Qualcomm, but it risks a big drop in global market share without government support for the sector, warned a report released on Wednesday.
The United States has already lost its lead in chip manufacturing, prompting the Biden administration to pass the CHIPS and Science Act this year. An earlier report by SIA and BCG in 2020 showed the U.S. share of modern global chip manufacturing capacity had fallen to 12 per cent by that year, down from 37 per cent in 1990.
The report also said government support is helping companies in countries like China and South Korea to gain market share in chip designing as well.
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