In this article we talk about 5 biggest countries in the semiconductor industry. If you want to check out how supply chains in the industry were disrupted during the pandemic, please go to Semiconductor Market Share by Country: Top 12.
5. China
Number of fabrication plants: 70
China remains one of the largest markets for semiconductors, with sales there totaling $180.4 billion in 2022, a YoY decrease of 6.2%. China, striving to lead the global pack in artificial intelligence and quantum computing, is banking heavily on a steady supply of semiconductors to hit that goal. The catch, though, is that the US sanctions on semiconductor exports to China are putting a serious squeeze on that supply.
Despite the hurdles, China’s top chip player, Semiconductor Manufacturing International Corp. (SMIC), pulled in a record revenue in 2022, hitting $7.2 billion, a solid 34% jump from the previous year. The US threw a wrench into China’s semiconductor plans by cranking up restrictions on exports last year. The goal was clear – to put the brakes on China’s AI ambitions and throw a curveball into its chip-making progress. These restrictions not only impacted US companies but also roped in allies like the Netherlands and Japan, preventing them from supplying machines, tools, and personnel to China.
4. United States
Number of fabrication plants: 76
Global semiconductor sales reached $574 billion in 2022, and U.S. semiconductor companies accounted for sales totaling $275 billion which amounts to around 48% of global market share.
For an extended period, chip manufacturing has been concentrated in Southeast Asia and China. During times of smooth supply chain operations, there was little motivation for companies to establish new fabs outside this region. However, the landscape has shifted due to challenges in chip production and distribution arising during the pandemic. These factors have led companies to reconsider their fab locations, with a newfound interest in exploring sites in the United States.
The availability of subsidies stands out as a significant factor when assessing potential new locations. In fact, Intel is planning a substantial investment of up to $100 billion to establish what could become the world’s largest chip-making complex in Ohio. This move aims to enhance capacity in response to the global shortage of semiconductors, impacting various industries from smartphones to automobiles.
3. Japan
Number of fabrication plants: 102
According to Spherical Insights, Japan’s Semiconductors Market Size reached $42.86 billion in 2022, and is expected to grow at a CAGR of 9.64% from 2022 to 2032. In the 1980s, Japan dominated as the world’s primary semiconductor producer, contributing more than 50% to global production. Presently, Japan’s share has reduced, but it maintains significant market presence and competitiveness in sectors like memory, sensors, and power semiconductors. Although no longer the top semiconductor market, Japan is actively pursuing new industrial strategies, investing $500 million in a semiconductor venture, led by tech giants such as Sony Group Corp and NEC Corp, aiming to reclaim a leading position in advanced chip manufacturing, as reported by Reuters.
2. South Korea
Number of fabrication plants: 15
In 2022, South Korea maintained its position as the second-largest contributor to the global semiconductor market share, with total semiconductor exports reaching $129.2 billion. Among these exports, $73.8 billion originated from memory semiconductors.
South Korea stands out as the frontrunner in memory chip fabrication, driven by industry giants Samsung Electronics and SK Hynix, which collectively command a significant 73% of the global DRAM market share and 51% of the NAND flash market.
1. Taiwan
Number of fabrication plants: 77
Taiwan, having the highest semiconductor market share by country, produces over 60% of the world’s semiconductors, with more than 90% being the most advanced. The dominant player in this landscape is the Taiwan Semiconductor Manufacturing Corporation (TSMC), boasting a market cap of $534.97 billion and ranking as the 11th most valuable company globally. Taiwan Semiconductor Manufacturing Company (TSMC), holds approximately 54% of the global market share. Notably, TSMC supplies chips to major companies like Apple, Qualcomm, and Nvidia.
In response to the supply chain disruptions caused by the pandemic, TSMC strategically addressed the crisis by establishing a new fab plant in Arizona, USA, contributing to the resilience of the semiconductor supply chain.
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