Publish Date
Feb 26, 2024
SEMICONDUCTOR OPPORTUNITIES FOR PRIVATE EQUITY PLAYERS
Service / Industry: United States
Beyond the CHIPS Act: Nearshoring Semiconductor Packaging and Testing as an Emerging Investment Opportunity
The CHIPS and Science Act of 2022 aimed to shift some of the semiconductor manufacturing and packaging capacity from Asia, where it has flourished for decades, back to the United States. So far, it has been doing just that.
Some nearby countries are now emerging as attractive investment opportunities as the industry looks for reliable, lower-cost partners. One of the most promising regions will most likely be Latin America, where U.S. Automotive and Aerospace industries already have a proven track record of conducting high-end supply chain manufacturing with a growing, talent-rich workforce.
In our prior paper, we made the case that now is the time for Private Equity to invest in Semiconductors.[1] In this article, “Beyond the CHIPS Act: Nearshoring Semiconductor Packaging and Testing as an Emerging Investment Opportunity,” authors Scott Jones, Irene Signorino and John Zuk make the case for PE firms and investors to explore opportunities in Latin America, especially in semiconductor packaging and testing facilities.
Authors
Scott Jones
Scott Jones is a Managing Director with Alvarez & Marsal Private Equity Performance Improvement in San Francisco. He co-leads the Software, Technology & Services practice.
IRENE SIGNORINO
Irene Signorino is a Senior Director with Alvarez & Marsal’s Private Equity Performance Improvement practice in Los Angeles. She is part of A&M’s Software, Technology & Services (STS) industry group. Ms. Signorino concentrates on M&A deal advisory, specifically on commercial and operational due diligence, integration and separation execution, go-to-market and manufacturing operations.
