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U.S. semiconductor companies are accelerating investments in AI-focused chip development, advanced packaging technologies and new supply chain strategies as semiconductors become increasingly critical to digital transformation and economic competitiveness, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® Semiconductor Industry — Services and Solutions report for the U.S. finds that the rapid growth of AI and high-performance computing is reshaping semiconductor design, engineering and manufacturing. As semiconductors become strategic assets for both enterprises and governments, organizations are navigating geopolitical changes, supply chain realignment and rising pressure to innovate faster while making operations more resilient.
“Competitive advantage in semiconductors is no longer determined solely by who can design the fastest chip,” said Bob Krohn, partner and manufacturing lead, ISG. “The companies pulling ahead are those that can simultaneously manage design complexity, packaging innovation, supply chain resilience and access to specialized talent. Success increasingly depends on orchestrating an entire ecosystem, not just advancing a single technology.”
The proliferation of AI workloads is driving demand for high-performance and specialized chips in data centers, edge computing infrastructure and consumer devices. Semiconductor enterprises in the U.S. are investing in AI-optimized silicon for complex workloads, balancing performance requirements with energy efficiency. This trend is intensifying innovation and competition throughout the semiconductor ecosystem.
U.S. semiconductor companies are also adopting advanced packaging technologies and chiplet-based architectures, which combine multiple chips into a single package, to address the rising cost and complexity of chip scaling. Approaches such as heterogeneous integration and 2.5D and 3D stacking are helping enterprises improve performance, increase flexibility and accelerate innovation while enhancing energy efficiency.
Recent supply chain disruptions and U.S. government policies are prompting organizations to build resilience through domestic manufacturing investments, regional diversification and multi-source procurement. Enterprises are placing greater emphasis on risk mitigation and long-term supply security even as these efforts increase operational complexity and costs.
“Competitive advantage in semiconductors is increasingly defined by the ability to combine AI-driven design innovation with engineering and manufacturing that can withstand disruptions,” said Swadhin Pradhan, principal analyst, ISG, and lead author of the report. “Service providers are helping semiconductor companies navigate growing technical complexity through advanced engineering services, design automation and packaging expertise.”
The report also explores other trends affecting the U.S. semiconductor industry, including the introduction of sustainable manufacturing practices and expansion into emerging markets for skilled talent while strengthening regional ecosystems.
For more insights into the challenges faced by semiconductor enterprises in the U.S., along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 36 providers across four quadrants: Design, Test and Verification Services, Manufacturing and Engineering Services, Supply Chain and Procurement Services and Technology Transformation and Consulting.
The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in all four quadrants. It names Deloitte as a Leader in three quadrants and Cyient, LTTS, NTT DATA and Quest Global as Leaders in two quadrants each. EY, Genpact, LTM, MosChip and Tech Mahindra are named as Leaders in one quadrant each.
In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. The report names eInfochips and LTM as Rising Stars in one quadrant each.
