As the United States scales up its domestic semiconductor manufacturing capacity, there are significant challenges facing construction of new fabrication plants. These challenges could delay progress in an industry that is being increasingly relied on to provide national security
Skilled labour
One of the biggest challenges facing semiconductor fab construction is the shortage of skilled construction and technical workers. Fabs require highly specialised labour, including engineers, electricians, pipefitters, and technicians familiar with advanced manufacturing standards. As demand for talent exceeds supply, projects can risk delays and cost overruns.
Sustainability
There is a greater emphasis on sustainability within the semiconductor industry because many of the most important customers want to reduce emissions along their supply chains. Semiconductor manufacturing may attract particular scrutiny from end customers because it is responsible for a high level of emissions associated with end products. Fab owners may also consider accessibility to renewable-energy resources more carefully as they decide where to build new main fabs, since 45 percent of emissions of a typical fab are electricity related, excluding Scope 3 downstream emissions.
Supply chain complexity
The typical semiconductor production process could involve steps in more than five countries and three or more shipments across the globe. Regional bottlenecks exist at nearly every step in the value chain because of industry consolidation, labour cost dynamics, and technical complexity. Strategies for material sourcing for construction and operations may require updating. The capital spend will extend beyond the fab build because creating a true ecosystem will necessitate additional infrastructure and suppliers.
Long Lead Times for Equipment and Materials
Semiconductor fabs require highly specialised equipment sourced from a small number of suppliers globally. Supply chain constraints can introduce long lead times, delaying key construction milestones. Managing procurement early is necessary to keeping projects on track.
Limited Industry Coordination
Successful fab delivery demands close coordination among various stakeholders, including chip manufacturers, construction firms, local governments, and educational institutions. A more unified ecosystem approach is needed to scale workforce development, share best practices, and align long-term planning.
Inconsistent Project Delivery
Unlike other manufacturing sectors with well-established project delivery practices, the semiconductor industry often relies on inconsistent or fragmented methods. Many fab projects suffer from unclear scope definitions, misunderstood contractor incentives, or poor integration across disciplines, leading to inefficiencies and schedule issues.
To discuss mega facility construction and the key issues facing the industry, connect with solution providers and network with delegates, attend the Constructing Mega Facilities: Advances in Planning, Design, and Engineering Summit taking place on April 9th and 10th, 2025, in Houston, Texas.For more information, visit our website or email us at info@innovatrix.eu for the event agenda. Visit our LinkedIn to stay up to date on our latest speaker announcements and event news.
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