In the United States, the review of supply chains due to the pandemic and the war in Ukraine, along with the strengthening of investment incentives, is contributing to the growth of investments in the manufacturing sector. Among the factors generating this new phase of industrial development, in addition to global phenomena, are the increase in reshoring projects and new Foreign Direct Investments (FDI), also linked to federal subsidies, particularly in the chip and clean tech sectors.
The relocation of production, especially in the semiconductor and clean energy sectors, has become a widespread phenomenon, with a significant increase in announced job opportunities. In the first quarter of 2023, announcements of job opportunities related to reshoring surpassed those of foreign direct investments. The electronics, appliances, and computer sectors accounted for the majority of job announcements.
The incentives and policies of the Biden administration, such as the Defense Production Act, the Chips Act, and the Inflation Reduction Act, have contributed to the momentum of investments and the production of clean technologies and semiconductors in the United States. This process of industrial growth aims to reduce the country's dependence on China and Taiwan in strategic sectors for energy transition and strategic security.
To learn more, read the full article by Andrea Noris and Francesca Sanguineti for ISPI: USA: Reshoring first.
