Where Would I Put a US Semiconductor Fab?

Peter Zeihan 10 min

The Midwest is the only viable location for a full semiconductor sector transplant. The obstacles are many, but the investments will be huge.

  • Donald Trump

Chapters

  1. 0:00

    The Semiconductor Supply Chain

    Explains that fabs are only one part of a massive supply chain involving over 100,000 steps. Describes the manufacturing steps from melting silicon to etching circuits on a disc.

  2. 2:50

    The Downstream Problem

    Argues that the US lacks the labor and capital for the hundreds of companies needed after the fab.

  3. 6:18

    Why Texas Fails

    States that Texas population growth has stagnated due to immigration crackdowns and low birth rates.

  4. 7:38

    The Midwest Solution

    Concludes that the Midwest offers the necessary flat land, infrastructure, and blue-collar workforce.

Key points

  • 0:00

    Semiconductor fabs are only one part of about 100,000 supply chain steps.

  • 2:50

    The downstream manufacturing requires over an order of magnitude more labor and capital than the fab itself.

  • 4:02

    The US lacks the modular adaptable workforce needed for downstream processing in major cities.

  • 6:18

    Texas has become net negative in population growth regarding immigrants.

  • 6:18

    Americans are less mobile and birth rates have dropped significantly across the country.

  • 7:38

    The Midwest possesses flat land and good infrastructure linking major cities together.

  • 8:15

    The region has a legacy of blue-collar workers suitable for post-fab industry jobs.

  • 8:15

    The Midwest has over 40 million people accessible from outside major cities.

  • 8:15

    Intel chose to build its new facility directly outside Columbus, Ohio.

  • 8:15

    The Midwest is the only viable location for a full semiconductor sector transplant.

Who and where

People · 1

  • Drawing of Donald Trump

    Donald Trump 1

    President of the United States (2017–2021; since 2025)

    Photo 1

1. Photo: Daniel Torok, Public domain, via Wikimedia Commons · Wikidata · redrawn in our house style (Donald Trump)

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