The competition for technological dominance in semiconductors is escalating. In August 2022, the United States introduced the $280 billion CHIPS Act, also known as the Semiconductor Support Act, to bolster domestic semiconductor production. The CHIPS Act aims to prevent the growth of semiconductor manufacturing facilities in China by offering investment subsidies to companies that establish factories in the U.S. This initiative seeks to maintain the “semiconductor super gap” by actively supporting research and development (R&D) and human resources training.
Purdue University in Indiana has played a key role in implementing the CHIPS Act, providing the necessary R&D and workforce training to transition from the lab to the fab, the semiconductor production facility. SK Hynix is also building a $3.87 billion high-bandwidth memory (HBM) fab in Indiana to capitalize on Purdue University’s technology and workforce.
Mark Lundstrom, Purdue University’s special advisor to the vice chancellor, oversees semiconductor R&D at the institution. He is a key figure in the U.S. semiconductor strategy. “Collaboration is essential to achieving breakthroughs in semiconductors, which have reached their technological limits,” Lundstrom said in a July 2 interview with ChosunBiz at the Fairmont Ambassador Seoul Hotel in Yeouido, Seoul.
In 2003 and 2022, Lundstrom wrote in the international journal Science that “Moore’s Law, which states that the number of transistors on a chip doubles yearly, will reach its limit.” He emphasized that Moore’s Law continues to challenge the semiconductor field, noting that technologies and equipment have become increasingly complex and expensive, making it difficult to transition research from universities to semiconductor manufacturing plants.
The U.S. aims to increase domestic semiconductor production to 14% by 2032, up from the current 10%. With rapid advancements in computing technology, ensuring a reliable supply of semiconductors is crucial. “Global semiconductor sales, currently around $500 billion, are expected to reach $1.2 trillion by 2030,” Lundstrom said. He highlighted the critical importance of securing semiconductors for national security.
Lundstrom identified international collaboration, spearheaded by the CHIPS Act, as a solution for semiconductor innovation. “The growth of the semiconductor industry is an opportunity for the U.S., but also for South Korea and Taiwan, where TSMC is located,” he said. “If Samsung Electronics builds a fab in Texas and SK Hynix builds a fab in Indiana, the U.S. government’s support can help fill in each other’s gaps and promote growth.” He added that international cooperation in semiconductors could prevent competitors like China from catching up.
Lundstrom believes the upcoming U.S. presidential election in November will have minimal impact on the semiconductor industry, as there is a bipartisan consensus on its importance. However, he advised that Samsung and SK Hynix, recognizing the limitations of their memory semiconductor-centric businesses, must develop technologies simultaneously addressing computing and memory.
“The CHIPS Act received bipartisan support in the U.S., so there is no debate about the alliance between South Korea and the U.S. regardless of the election outcome,” Lundstrom said. “Korean semiconductor companies such as Samsung and SK will have opportunities if they develop chips that combine computing and memory, moving away from the low-margin memory semiconductor industry. We need to break out of traditional thinking because semiconductor technology is changing dynamically,” he added.
References
Science(2022), DOI: https://doi.org/10.1126/science.ade2191
Science(2003) DOI: https://doi.org/10.1126/science.1079567
