US Digital helps fuel semicon boom

In a time of unprecedented technological growth spurred by the advent of Artificial Intelligence models, US Digital (USD) is surging with renewed vigor into the industry of semiconductors.

Original Equipment Manufacturers and end-users alike, directly supplying the semicon industry, are requesting record numbers of USD encoders.

According to a July report by The New York Times, “... There are about 20 million A.I. chips crammed into the data centers that underpin the technology's growing abilities and usage worldwide … That figure is expected to double roughly every nine months, putting the world on pace to have about 200 million of the chips by the end of 2028 — 10 times current levels.”

With expansion trajectories like this, automation will play a pivotal role in maintaining American competitiveness on the global market. On-shoring of semicon manufacturing requires high levels of automation in order to keep costs and process-repeat abilities at competitive levels with other regions of the world. 

Automation requires motion with incredibly high positional accuracy. Nearly all automated motion utilizes motors leveraging positional repeatability. This consistency is achieved via positional feedback, otherwise known as encoder feedback.

Products like USD’s E5 and L2 Motor Encoders provide this on a wide variety of motors with resolutions up-to 20,000 Pulses-Per-Revolution.

“US Digital is enjoying a very strong growth year so far in 2026,” said Jim Stevens, Vice President of Business Development at USD. “Part of this is due to the rapid growth of semiconductor processing equipment supporting the A.I. boom.”

Processes like photolithography and wire bonding use linear strips in automatic tracked systems to maintain precise movement speeds and stop points as they transport photomasks and circuit boards. Rotary motor encoders are used in tracking positions within the motors of SCARA robots, which are routinely implemented in silicon wafer handling and inspection.

In addition, specific gases used in many semicon processes must be supplied in exact quantities. The valves that provide these gases must have certain position control feedback, so that operators are confident in proceeding with an operation. Our encoders can supply this important confirmation when attached to the stepper motors actuating the valves.

As the future of computing unfolds at ever increasing speeds, USD is prepared to meet the needs of customers across the semicon industry. Emphasizing US-based manufacturing, competitive lead-times and first-in-class customization, USD will continue to serve the automation world, rising to the challenge with excellence.

If you would like to learn more about how we can serve your encoder needs, please reach out to us via sales@usdigital.com.