In the past 50 years, the U.S. lost 70,000 factories and 5 million manufacturing jobs to offshoring, many in the electronics and electrical device industries. The resulting broad hollowing out of U.S. manufacturing dramatically reduces the domestic demand for semiconductors just as production is scheduled to surge and weakens our ability to ramp defense materiel production. In view of rising geopolitical tensions and tariffs, rebuilding a broad and deep manufacturing base is essential for the country and the semiconductor industry. Current administration policy is designed to recover these losses. Our Reshoring Survey details the reshoring results of 500 manufacturers and the impact that various policies would have on their reshoring. It is clear that shorter supply chains are lower risk and are more profitable for OEMs for 20 to 30% of products that are now imported. Two million jobs have been announced reshored since 2010. Find how to accelerate and benefit from the trend. Takeaways from the survey include: • Workforce development will have more impact than tariffs, taxes, regulations or currency. Policy recommendations to overcome the shortage. • 96% of companies are satisfied or partially satisfied with their reshoring efforts. • Only 30% of companies are using total cost of ownership (TCO) to compare sources, leaving a million jobs offshore. • 39% of those who have offshored rank cost as the #1 reason, availability of components as #2. Great opportunity to fill supply chain gaps.
