Investment Rating - The report does not explicitly state an investment rating for the semiconductor industry Core Insights - The U.S. semiconductor industry is a critical driver of economic strength, national security, and technology leadership, accounting for nearly half of the global market share [2][15] - The industry has shown steady growth, with worldwide semiconductor sales projected to reach $588.4 billion in 2024 and $654.7 billion in 2025, reflecting a compound annual growth rate of 6.0% from $139.0 billion in 2001 to $526.9 billion in 2023 [11][12] Section Summaries Section 1: Industry Overview - The U.S. semiconductor industry holds a 50.2% global market share, having regained its leadership position in the late 1990s after losing ground in the 1980s [15] - U.S.-based semiconductor company sales grew from $71.1 billion in 2001 to $264.6 billion in 2023, maintaining a compound annual growth rate of 6.0% [19] - Semiconductors are one of America's top exports, valued at $52.7 billion in 2023, making it the sixth-highest among U.S. exports [25] Section 2: Global Market - Global semiconductor sales reached $526.9 billion in 2023, driven primarily by consumer products such as laptops and smartphones [30] - The largest regional market for semiconductors is Asia Pacific, with China accounting for 53% of that market and 29% of the total global market [36] Section 3: Capital and R&D Investment - Total R&D and capital expenditures by U.S. semiconductor firms reached $107.5 billion in 2023, with a compound annual growth rate of approximately 5.9% from 2001 to 2023 [41] - U.S. semiconductor industry R&D expenditures totaled $59.3 billion in 2023, reflecting a consistent commitment to R&D despite market fluctuations [50] - Investment per employee in capital expenditures and R&D reached $223,500 in 2023, indicating a high level of capital intensity in the industry [47] Section 4: U.S. Jobs - The U.S. semiconductor industry accounts for approximately 338,000 direct jobs and supports over 1.9 million additional jobs in the economy [68] Section 5: U.S. Productivity - U.S.-based semiconductor firms have seen labor productivity more than double since 2001, with an average sales revenue per employee exceeding $632,000 in 2023 [74]