Semiconductor: Supply Chain Deep Dive Assessment

Abstract

In February 2021, President Biden signed Executive Order (EO) 14017, “America’s Supply Chains,” directing seven executive agencies to evaluate the resilience and security of the nation’s critical supply chains and to craft strategies for six industrial bases that underpin America’s economic and national security. See Sec. 3(b) of E.O. 14017. As part of the one-year response to EO 14017, the U.S. Department of Energy (DOE), through the national laboratories, conducted evaluations of the supply chains that encompass the Energy Sector Industrial Base, with a particular focus on technologies required to decarbonize the U.S. by 2050. This report focuses on one of these technologies, semiconductors, both conventional and wide bandgap (WBG) power electronics (PE). As noted in the 100-Day report, conventional semiconductors are a keystone technology that are essential for the operation of nearly every electronic device, including those that are critical to decarbonization, such as electric vehicles (EVs), industrial and building applications, and electricity generation and end use. In addition, power electronics have been applied to industrial equipment to improve energy efficiency and enhance controllability. Power electronics have also been used to improve the reliability of data centers and critical infrastructure, including the stabilization of the electric grid while subjected to disturbances. Increasingly, power electronics are being used to integrate renewable energy and battery storage systems, enabling new grid services and the development of microgrids. It is estimated that 30% of the electricity used in the U.S. passes through power electronic devices, and studies suggest that this number could reach 80% as power electronics are deployed in more markets. Nearly all forms of electrified transportation will depend on power electronics. Power electronic systems utilize high-capacity semiconductor devices at their core. The continued growth in power electronics depends on sustained innovation in the semiconductor industry.