Recently, UBS endeavored to define a political-economic trend in the semiconductor space—"silicon nationalism" or "the recognition by major global powers that semiconductor manufacturing is increasingly a strategic imperative." To go a step further, I define silicon nationalism as the attempt of governments to onshore semiconductor supply chains entirely or build a semiconductor supply chain of politically allied countries.

This trend is clear when analyzing recent government investments globally:

• In the U.S., Congress has passed the U.S. Innovation and Competition Act (USICA) and the America COMPETES Act, which each propose a $52 billion investment in domestic manufacturing through subsidies. Additionally, a rejiggered FABS Act would establish an investment tax credit to incentivize semiconductor manufacturing, design and research.

• In the EU, the European Chips Act would add 15 billion euros ($17.11 billion) in public and private investment to the 30 billion euros already earmarked to bolster semiconductor manufacturing on the continent.

• China’s national fund has invested $39 billion to date in semiconductor manufacturing as part of the Made in China 2025 initiative, targeting 70% self-sufficiency by 2025. This doesn't include $50 billion in government grants, equity investments and low-interest loans, as well as a corporate tax exemption for chipmakers worth $20 billion.

• Taiwan announced a goal of self-sufficiency pertaining to manufacturing the equipment needed to produce chips. Last year, Taiwan spent $600 billion purchasing equipment from abroad.

• South Korea announced a $450 billion investment to boost semiconductor production last year.

These are only the federal investments. In the U.S., local incentives in semiconductor hubs like greater Phoenix, Columbus, Austin and Albany have drawn private investments of tens and even hundreds of billions of dollars. In China, cities like Shanghai have announced subsidies of up to 30% for semiconductor materials and equipment.

The goal of these investments is "tech sovereignty" (a phrase European Commission President Ursula von der Leyen has been fond of using over the years). Or, as President Biden put it in his State of the Union address, "instead of relying on foreign supply chains, let’s make it in America."

Of course, no single country can own the end-to-end semiconductor supply chain. As Accenture analysts put it, "a semiconductor product could cross international borders approximately 70 or more times before finally making it to the end customer."

For this reason, global leaders are building alliances to bolster onshore supply chains and create national chip stockpiles for critical industries like telecommunications, healthcare and military and national security applications. In the U.S., EU and China, committees have assembled to strengthen cooperation between governments and friendly foreign semiconductor industries. These alliances pit the U.S. and EU against China, with the semiconductor hubs of eastern Asia caught between global superpowers—none more so than Taiwan.

Alex Capri, a research fellow at Singapore-based Hinrich Foundation, states, "Techno-nationalism is a new strain of mercantilist thinking that links technological innovation and capabilities directly to a nation’s national security, economic prosperity and social stability." As Capri observes, mercantilism—a protectionist posture toward global trade policy—has historically been the rule, not the exception.

However, in the post-WWII era, this rule has given way to a period of globalization and international trade. Now, here is the crux of the matter: The semiconductor industry germinated, grew and thrived in this anomalous period of global trade and cooperation.

What will the industry that underpins all modern technology look like in this new era of silicon nationalism? The truth is, we don’t know. There are positive effects of increased public and private investment in the semiconductor industry, including job creation, investment in STEM education and R&D and increased expenditures in cybersecurity.

There are also negative effects of silicon nationalism. Recently, the U.S. Chamber of Commerce proposed exempting semiconductor manufacturing from NEPA review to expedite new fabrication plant construction. Whether that's good or bad isn't for me to say. However, according to research results from management consultancy McKinsey, a typical semiconductor fabrication center will use as much energy as 50,000 homes. It would be naive to think a massive push to expedite onshore manufacturing won't require some environmental tradeoffs.

Currently, experts suggest a decline in international cooperation may result in prolonged and heightened chip shortages and higher prices for consumer and enterprise technology. According to the findings of an SIA study, 75% of the world’s chip production is concentrated in East Asia, a hotbed for foundries (contract manufacturers). One company, TSMC, accounts for about 24% of that capacity and 92% of the world’s production at the leading edge.

It's perhaps the rise of fabless manufacturing in the 1980s that enabled the democratization of consumer electronics we've come to take for granted, thanks to the profitability of differentiating roles in the value chain. Value creation in the semiconductor industry is divided into four categories: equipment, design, fabrication and assembly, to say nothing of finite raw materials needed for production. To date, the U.S. has largely controlled the relationship of U.S. firms with TSMC thanks to buying power and equipment manufactured by the U.S. and its allies, especially state-of-the-art lithography systems required to produce leading-edge chips.

That said, the geopolitical situation of TSMC is nebulous. Whether buying power and equipment will take precedence over, for example, geographical proximity should chip wars escalate is a question on many minds now.

One thing is certain—the rise of silicon nationalism is creating uncertainty. Consumers are wondering if they should stock up on the latest iPhone or preorder a new car. Governments are trying to figure out how to bridge the decade(s) and trillions of dollars it will take to deglobalize supply chains. Companies in the semiconductor industry are faced with navigating complex geopolitics in the course of everyday business. Finally, there's uncertainty about a market that's come of age in what may very well be a bygone era.

TEMPE, Ariz.—March 17, 2022—Moov, a data-fueled marketplace for used semiconductor manufacturing equipment, today announced the location of its new headquarters in the 100 Mill building in Tempe, Arizona.

Moov will command the 16th floor, spanning about 32,000 square feet, at 100 Mill. That 18-story tower is among the premier commercial real estate locations in Greater Phoenix. Amazon and Deloitte also are building tenants.

“With our permanent headquarters at 100 Mill, we establish Moov as among the most significant players within the semiconductor industry here in the Silicon Desert,” said Moov co-founder and CEO Steven Zhou. “Our accelerating success and funding are affirmations that Moov is filling a critical need in the semiconductor industry — creating a more flexible supply chain for capital equipment while drastically reducing procurement lead times. As the United States and other countries around the world double down on growing their domestic semiconductor manufacturing capabilities, the ability to quickly and cost-effectively source capital equipment to expand existing capacity and equip new fabs is critical.”

Moov’s new headquarters also sets the stage for the company’s plan to increase its headcount by about 300% in 2022. Moov will employ more than 150 total employees by the end of this year. About three-quarters of the new hires will be based in Greater Phoenix.

The region has become a burgeoning national semiconductor hub, attracting billions of investment dollars in recent months.

A growing urgency has pervaded the sector, as the shortage of new manufacturing equipment, especially for legacy nodes, is increasingly acute. Lead times on some types of equipment can exceed a year. Chip shortages are expected to spur a 10% increase in expenditure on semiconductor equipment this year, hitting a record high of $98 billion, according to the industry trade group SEMI.

Moov is uniquely positioned to solve a problem identified by a U.S. Department of Commerce January report: Less-advanced chips are feeling supply shortages most keenly; they are produced by equipment often no longer in production — an obstacle compounded by the fact that no unified secondary market for equipment exists.

Chicago-based Cushman & Wakefield plc (NYSE: CWK) is assisting Moov’s custom buildout with real estate and project management services.

Amenities at the state-of-the-art 100 Mill building include 10-foot floor-to-ceiling glass, a rooftop deck, a fitness center, a training room and conference center, a tenant bar and lounge, a covered outdoor first-floor patio, a lobby coffee shop, on-site bike storage and retail space spanning 7,500 square feet.

“We are investing time and resources to custom-build our new space, which will accommodate our ambitious hiring plan for the greater Phoenix area, while keeping employee wellness in mind,” Zhou said. “What can we provide to make them most productive while elevating the electric culture we’ve already created? The layout of our new headquarters space encourages easier cross-functional collaboration and sets all Moovers up for success. We’ve also been intentional in the design. It will have stations that accommodate various styles of working: standing, sitting, ‘relaxed,’ private, collaborative, etcetera. We’ll also have unique areas for relaxation and fun that all organically build a sense of camaraderie, where our teammates can gather and talk about things outside of work initiatives.”

Greater Phoenix continues to grow in importance to the U.S. semiconductor industry.

California-headquartered Intel Corp. (Nasdaq: INTC) last year announced it would invest $20 billion to build two new semiconductor factories at the chip company’s Chandler campus. And, the investment by Taiwan Semiconductor Manufacturing Co. in its already-under-construction semiconductor fabrication facility in north Phoenix ultimately could reach roughly $35 billion.

The region now is home to more than 75 semiconductor and related device manufacturing operations that employ nearly 20,000 people, according to the Greater Phoenix Economic Council’s 2021 Semiconductor Industry Report. The council’s current prospect pipeline includes 40 semiconductor manufacturers and related supply chain firms that could bring an additional number of jobs surpassing 10,000 and $45 billion in capital investment to the region. Semiconductor and related device manufacturing jobs in Phoenix grew 10.94% from 2020 to 2021.

Additionally, Moov is contributing to Metro Phoenix’s and Tempe’s boom in the general tech-job market. City of Tempe data shows that Metro Phoenix ranks third nationally in tech talent markets for growth, with Tempe No. 1 within the metro area. Bestplaces.net projects Tempe job growth during the next decade to be 49.9% — significantly higher than the national average of 33.5%. SmartAsset last year listed Tempe No. 7 in its rankings of America’s top boomtowns.

About Moov Technologies Inc. Headquartered in Tempe, Arizona, and Austin, Texas, Moov is a technology-driven marketplace and asset management platform that matches buyers and sellers of pre-owned semiconductor manufacturing equipment. Built by a team with more than 50 years of experience in the manufacturing equipment brokerage industry, Moov’s platform ensures accurate listings and faster transactions. CEO Steven Zhou and Managing Director Maxam Yeung co-founded the company in 2017. Moov employs more than 50 people, and also boasts a presence in San Francisco; Shanghai, China; and Taipei, Taiwan. To learn more, please visit Moov.co.

Media contact Treble Michael Kellner moov@treblepr.com

Moov Technologies, a startup that runs an online marketplace for semiconductor equipment, is growing so quickly that it needs more office space. The company is slotted to occupy a big space in a new East Valley office building.

Moov Technologies Inc., a Tempe startup that connects buyers and sellers of pre-owned semiconductor manufacturing equipment, is one of the companies that sees a bright future here.

The startup is opening a second headquarters in downtown Austin. The 3,527-square-foot space is in the Omni Austin Hotel Downtown building, which is also home to startup accelerator and coworking space Capital Factory. Moov worked with commercial real estate brokers at Cushman & Wakefield to secure the space.

Moov relocated to Tempe last year from San Francisco. Its expansion into Austin comes on the heels of a $41 million series A funding round led by Tiger Global in November.

The company's second headquarters is led by Raymond Mahon, Moov's director of customer success. Moov is looking to build up its sales team in Austin, with Partner Development Manager Sammy Mustafa leading that charge.

For now, Moov is operating with a hybrid work schedule; existing and future employees will have the option to work in the Austin office. It's not clear yet how many people that will be.

But co-founder and CEO Steven Zhou said he expects Moov to grow at a relatively fast pace in Austin. He declined to share revenue figures, but said the company has raised nearly $50 million in venture funding, is profitable and forecasts more than $100 million in revenue in 2022.

"We've been growing at in the multi-hundreds of percentages in revenue, year-over-year," he said. "And actually, quite the opposite of most companies, the bigger we get, the more our growth actually speeds up."

Some of that is due to the current global chip shortage, which has impacted products from tech gadgets to vehicles, and it's also growing organically as its network of buyers and sellers expands.

Moov, founded by Zhou and Managing Director Maxam Yeung in 2017, operates a managed marketplace for buyers and sellers, complete with photos and specifications like you might see for a house listing on Zillow. Buyers can make offers on the platform, but Moov also has representatives to help facilitate sales, especially on big-ticket items, which can reach into the millions of dollars for semiconductor equipment.

Zhou said Moov has signed a one-year sublease on its Austin office space. He expects that will accommodate around 25 full-time employees — or up to 40 with a hybrid schedule. He said the company will likely move into a new, more permanent space sometime next year. The company currently has about 40 employees total, and Zhou said he expects that to climb to 100 to 150 full-time employees this year.

The young company is used to relocation. Moov launched in San Francisco about four years ago. Just after it signed a lease for an office in downtown San Francisco, stay-at-home orders related to the Covid-19 pandemic arrived and employees had to work from home. They gave up the space and moved the HQ to Tempe in March 2021.

Zhou said Austin was an easy pick for an HQ2. Moov already had a few employees here, and it feels the city is very business-friendly.

"Austin is one of the largest and growing semiconductor hubs in the U.S., and knowing that we already have dozens of customers in Austin, it was a very obvious decision for us," he said.

Central Texas has been a hub for semiconductor development for decades. Chipmakers with an Austin presence include NXP, Infineon, Ambiq Micro, Vorago Technologies and others. Meanwhile, Samsung Electronics Co. Ltd. last year chose the Austin area over Arizona to invest $17 billion into a new, 6-million-square-foot chipmaking plant in Taylor. That's in addition to a northeast Austin plant it has run for 25 years. On top of that, Micron Technology Inc. is said to be scouting Central Texas — as well as Arizona — for a factory site.

The boom in chipmaking is driven by the world's increasing thirst for smart devices and products. That's been exasperated by global supply chain issues tied to the pandemic.

It's unclear how long the chip shortage and supply chain hiccups will continue, but Zhou said Moov will likely grow regardless.

"I know that a lot of experts out there are predicting that this may only last another year or two, but the way that we're thinking about it and seeing it is that chips are now in almost every single physical object in the world, and increasingly so," he said. "So the only way this really slows down is if the world stopped innovating, which we know is not going to happen. So we're incredibly bullish about the next several years."

Zhou said the company isn't currently planning to raise additional capital. He noted that Moov is positioned to take on other verticals such as solar equipment, photonics and printed circuit boards.

"It's unlimited blue ocean for us to really grow into," he said. "So all signs are pointing towards a potential public exit eventually."

Moov, a data-fueled marketplace for used manufacturing equipment, has closed a $41 million Series A funding round led by Tiger Global. Investors joining the round include public semiconductor investor Gavin Baker of Atreides Management, Valor Equity Partners, Avenir Growth Fund and existing investors.

The San Francisco-based company’s co-founders, Steven Zhou and Maxam Yeung, came up with the idea for Moov around a decade ago. The two say they recognized companies in the industry, such as Qualcomm and Samsung, spend billions of dollars a year purchasing manufacturing equipment only for it to get scrapped or forgotten in an offsite warehouse in a few years despite being usable for decades.

“We identified an opportunity that existed based on how long the equipment is being used versus how long it’s usable for,” Moov CEO Steven Zhou told TechCrunch in an interview. “There was a billion-dollar opportunity to repurpose this equipment. That’s where the idea of Moov came about. It’s essentially leveraging data and technology automation algorithms to more effectively match unused equipment and find new homes for it all over the world.”

The platform’s software matches equipment listed by sellers to companies that can use it by automatically serving them those listings. Buyers can also manually search through a mass list of equipment. Along with a real-time marketplace, Moov also features additional services such as logistics, refurbishment, insurance and asset management software.

As for the new funding, Moov plans to use it to expand its domestic presence into other semiconductor hubs such as Austin and New York. It also plans to expand its global presence in China, Taiwan, South Korea, Japan and Europe. The company will also hire executives, invest in research and development and continue to strategically purchase more inventory. Moov also plans to examine acquisition strategies with other industry players that could be plugged into its ecosystem.

Moov’s Series A funding round comes in the midst of the ongoing global chip shortage, as many industries have slowed production because manufacturers are unable to obtain the required equipment. Zhou says that Moov is working to help alleviate local shortages and that the company is able to reduce from months, down to days or hours the lead time for companies to purchase equipment.

The company’s data suggests that the value of used equipment has more than doubled over the past year, and these numbers are expected to continue to grow, doubling to around $200 billion per year within the next six to eight years. With close to $1.5 billion in active and available listings on its platform, Moov plans to play a role in shifting the global equipment purchasing mindset.

Zhou says the company is also proud to have built a marketplace that helps to reduce electronic waste globally. “As we grow, we’re really excited to play an increasing role in helping the reduction of the carbon footprint of global manufacturing and also to help alleviate the global chip shortage,” he said.

One of Moov's use cases is to help manufacturing companies recoup capital that would have otherwise been lost. On the buyer side, Moov aims to help small businesses and universities around the world that don't have the budget or network to acquire equipment to further their innovation.