Q3 2022 Silicon Valley Semiconductor Report

Spurred by chip shortages, congress passed the CHIPS act in August 2022. Notable benefits include $52.7 billion for semiconductor research, $39 billion to encourage manufacturers to build fabs, and a 25% investment tax credit for capital expenses for manufacturing semiconductors.

Semiconductor companies have announced new investments in the United States as a result of the CHIPS act.  Micron revealed plans to invest $40 billion over 10 years with the potential to add 40,000 American jobs3. Qualcomm and GlobalFoundries announced a $4.2 billion partnership to expand production in their facility in upstate New York. In January, Intel committed to invest $20 billion in semiconductor manufacturing in Ohio.  Upon news of the passage, Intel has considered increasing the total investment to $100 billion.    

This quarter, Sanmina expanded its presence in the region by leasing 109,400 square feet at 590 Brennan St in San Jose and occupying 59,020 square feet at 8200 Central Ave in Newark. NVIDIA renewed 99,800 square feet at 2770-2800 Scott Blvd in Santa Clara.  AMD leased 62,500 square feet at 2755 Augustine Dr in Santa Clara to help accommodate its quickly increasing headcounts.