Source page: McKinsey & Company
Commentary
Big things come in small devices
Semiconductors | North America | Defense
March 23, 2023 – More chips, anyone? The US Department of Defense has earmarked billions of dollars for microelectronics R&D over the next several years, find partner Rutger Vrijen and colleagues. The budget for dual-use (commercial and defense) microelectronics technology research is set to jump from $531 million in 2022 to about $1.1 billion in 2023. To adapt to the government’s shifting priorities, semiconductor companies can consider investing in key areas such as trusted microelectronics and packaging and integration technology.
To read the article, see “Government CHIPS on the table: How higher DOD microelectronics funding is here to stay,” March 3, 2023.
customizer here
Visual form
Stacked bar chart.
Layout / body structure
The chart places one stacked column for each fiscal year from 2022 through 2027, so the reader moves left to right across time while also comparing the custom-research base with the dual-use top segment inside every bar.
What is being compared
It compares US Department of Defense microelectronics research, development, testing, and evaluation budgets over time, separating custom technology research from dual-use technology research.
Measurement system
The values are measured in millions of dollars, with segment labels inside the bars and a total label at the top of each column.
Visible structure inside the graphic
Every bar has a dark lower block for custom technology research and a lighter upper block for dual-use research. The stacked totals rise sharply from 2022 to 2024 and then remain elevated through 2027, while the internal labels make it easy to see that the dual-use segment drives most of the jump.
Main takeaway from the visual
The projected increase comes primarily from the dual-use budget, which nearly doubles in one year and keeps the overall stack much higher than its 2022 starting point through the rest of the projection window.
Key standout values or extremes
The dual-use segment rises from 531 million dollars in 2022 to 1,088 million in 2023 and peaks at 1,147 million in 2024. Total spending climbs from 1,395 million in 2022 to 2,002 million in 2023 and 2,087 million in 2024 before holding near 1.9 to 2.0 billion through 2027.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.