Semiconductors 101: What they are, how they're used and what they mean to you

January 07, 2025 at 09:01 AM EST

(BPT) - Quick, what's a semiconductor? You probably have a vague understanding - they're in computers, right? You may have also heard about semiconductor shortages slowing automobile production.

The fact is, this little piece of technology is increasingly important to our modern world and vital to our way of life. Semiconductors are found in everything from smartphones and military guidance systems to modern vehicles. What are they, exactly? How are they used, and what do they mean to you? The ability to access the world in the palm of your hand, for one thing. Not to mention jobs.

It's worth brushing up on this technology. Here's a primer on semiconductors, from the Michigan Economic Development Corporation (MEDC).

What are semiconductors?

Semiconductors, better known as chips, are tiny devices that conduct electricity in certain conditions and block it in others. The ability to act as either a conductor or insulator is important because many of today's devices rely on the precise control of electric current to function properly. At the highest level, semiconductors are the foundation - the "brains" - powering the electronics we use every day, including smartphones, computers, AI, cars and much more.

Where are semiconductors used?

Even if you've never heard of semiconductors, you're relying on one right now to read this on your computer, tablet or smartphone. But they're not just for our personal devices. They're a foundational element in:

Advanced driver-assistance systems (ADAS) and infotainment systems in cars
Electric vehicle powertrains
Medical imaging equipment
Wearable health devices
Robotics and AI
Factory automation systems
5G networks
Data centers
Network infrastructure
Satellite systems
Missile guidance systems
Military electronics

In short, semiconductors help power the modern world. They are vital to our way of life and our economy.

Are all semiconductors made overseas?

With talk of trade wars and tariffs and how they will affect the availability of things like smartphones and cars, discussions come up about reshoring the semiconductor supply chain. In other words, bringing it to the U.S. from overseas. But, what you might not realize is that it's already happening. The state of Michigan, for example, is a leader in semiconductor manufacturing. Why Michigan? Location, resources and education.

Michigan has long been the global epicenter for manufacturing. The state is home to nearly one-fifth of U.S. auto production, more than any other state in the nation, and has the greatest concentration of original equipment manufacturers (OEMs) in the country, with 26 having headquarters or technology centers in the state.

Furthermore, semiconductor manufacturing relies on purified water - both to clean components and to cool down equipment. Michigan has access to more than 20% of the world's fresh surface water via the Great Lakes. The state strikes a delicate balance here, recognizing its responsibility to protect this crucial natural resource, while utilizing it to create local jobs and grow surrounding communities.

The availability of chips impacts every part of the modern world economy, much of which is represented by the brands with significant employment and physical presences in Michigan as well. They're companies like Hemlock Semiconductor, which produces the polysilicon for one-third of the world's chips, as well as KLA, Wacker, SK Siltron and Calumet Electronics.

Why does upskilling matter in the semiconductor industry?

It's not enough to be near industries that rely on semiconductors. It's also about having a skilled, local workforce to get the job done. This means technical training, in which workers learn the skills to operate the rather complex equipment needed to manufacture the chips and the kind of digital literacy necessary to analyze data and deal with problems that come up.

This shows that "bots" aren't here to take jobs, they're here to help create jobs. Better jobs, for both today's workforce and tomorrow's. And Michigan is at the forefront of this movement.

The University of Michigan is one of the top U.S. universities in semiconductor education, along with other Research 1 (R1) universities like Michigan State University and Wayne State University. Leaders in the state are also creating innovative workforce partnerships with the SEMI Foundation, ensuring the talent pipeline exists for these jobs. The Semiconductor Career and Apprenticeship Network Program will provide grant funding for workers in the microelectronics industry.

As you can see, semiconductors are a small piece of technology with a big impact. The MEDC works with Michigan businesses and communities to deliver the services and support they need to grow and succeed as the demand for semiconductors increases. To learn more, visit www.michiganbusiness.org/semiconductor.

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Semiconductors 101: What they are, how they're used and what they mean to you

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