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New southwestern hub signals major shift in U.S. semiconductor supply chain

August 19, 2025 | Jeff Lin

New Southwestern Hub Signals Major Shift in U.S. Semiconductor Supply Chain

The Southwestern U.S. is emerging as America’s new semiconductor supply chain hub according to Omdia’s latest analysis. The states of Arizona, New Mexico, and Texas are poised to form the core of this ecosystem, a strategic development driven by recent tariff policies and the Section 232 semiconductor investigation.

The emerging hub features a clear specialization of roles: Arizona will focus on advanced wafer fabrication, New Mexico on advanced packaging and PCB SMT, and Texas on high-value product assembly and distribution. This realignment is also influenced by the USMCA framework, which has seen U.S. PC brands begin relocating warehouses from Texas to New Mexico to support laptop assembly in Mexico with U.S.-made components. Federal initiatives such as the One Big Beautiful Bill Act are set to underpin long-term growth in the region’s ICT, automotive, defense, and aerospace sectors.

The rapid restructuring of the North American semiconductor landscape presents both challenges and opportunities for Taiwan's technology sector.

“This tariff-driven restructuring is reshaping the entire supply chain, putting pressure on mature-node foundries and LCD panel makers to consider their new roles in the U.S. supply chain while assembly plants gain new prominence,” said Jeff Lin, Senior Principal Analyst, Mobile PC. “The key for Taiwanese firms is to understand precisely where they fit into this new, geographically diversified ecosystem, whether it’s creating value through partnerships in advanced packaging or by supporting new manufacturing hubs. It’s about strategically navigating the shift, not just reacting to it.”


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Jeff Lin
Senior Principal Analyst, Mobile PC

As the lead analyst for the tablet and notebook PC market at Omdia, Jeff is responsible for primary research and forecasting on mobile PCs (tablet and notebook PCs) and the emerging PC market, including gaming notebook PCs, always-connected PCs (5G notebook PCs), and wearable PCs (virtual reality/augmented reality devices).

Prior to working at Omdia, Jeff was an engineer at Chunghwa Picture Tubes, where he led TV panel development projects and promoted products. He worked at Samsung Electronics Taiwan, winning the annual best sales award while handling HP’s monitor business account, and was a procurement manager at Benq for monitor panel and TV set purchasing and panel price trend analysis. Jeff joined DisplaySearch in 2010 as a value chain analyst for the tablet, notebook PC, monitor, and public display supply chain. Jeff graduated from Taiwan’s National Cheng Kung University with a degree in environmental engineering and holds an MBA from National Chengchi University in Taiwan.  

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