There is more than $1 trillion in manufacturing and infrastructure investments happening in the U.S. About $500 billion of these are mega project investments that include new semiconductor plants, electric vehicles (EV) and battery plants and clean energy projects.
According to new data from Goldman Sachs Research, this will ignite a renaissance in American manufacturing and increase equipment orders for all these projects in 2024.
The mega projects investments break down as:
- $222 billion for semiconductors
- $114 billion for EV and battery
- $86 billion for clean energy
Equipment spending
Many of these projects have already broken ground for construction. Goldman Sachs Research said $80 billion was allotted for these projects in both 2022 and 2023 compared with about $23 billion per year during the past decade.
However, these projects are still in the nascent stages, meaning a small proportion of equipment will be recognized initially. Equipment providers should see an uptick in orders from these projects in the first half of the year and onward, the company said.
Leading states
In the U.S., Texas is the leading state in terms of projects that have already broken ground — about 25% of all projects — mostly in semiconductor plants from vendors like Texas Instruments and Samsung as well as mega green hydrogen facilities cropping up.
Arizona follows in second place with mega projects coming TSMC with two semiconductor fabs planned and Intel with two additional fabs coming at its Ocotillo campus.
Louisiana is third overall with strong clean energy programs happening in the state. Fourth is Ohio with mega projects happening from Intel.
