Cranes, bulldozers, and scaffolding now dot the US landscape as a wave of residential and commercial building sweeps the country. In addition to private investment, the federal government’s $550 billion infrastructure legislation, designed to funnel money into road upgrades, rail improvements, and other public assets, is expected to raise construction spending to about $1 trillion over the next five to ten years.
Companies in advanced industries, which includes sectors such as semiconductors, defense, aerospace, batteries, advanced electronics, and automotive, could account for a good proportion of the construction spending. Through 2028, the value of their recent and proposed construction projects is expected to reach about $400 billion in the United States. The bulk of this spending, about $223 billion to over $260 billion, will go toward building or expanding semiconductor fabs across the country.1 The remainder will be devoted to giga-factories for batteries, data centers, renewable-energy plants, and other critical infrastructure.
Some semiconductor companies have already begun constructing new US-based fabs, but many have encountered obstacles related to the COVID-19 pandemic, which temporarily halted or slowed construction and disrupted supply chains. Shortages persist for many critical materials, including polyvinylidene fluoride (PVDF) piping and concrete. (For more information, see sidebar “Fab materials and equipment.”) Difficulties getting construction licenses and permits have also caused delays. But the shortage of skilled labor, including pipe fitters, welders, electricians, and carpenters, poses the greatest challenge to fab construction. Competition for these employees is intense across sectors, and people with specialized skills, such as tool calibration, are particularly scarce.