In this piece, we will take a look at the top five semiconductor manufacturing countries in the world. For more countries, head on over to Top 10 Semiconductor Manufacturing Countries in the World.
5. Federal Republic of Germany
Number of Operational and Planned Fabs December 4, 2022: 20
The Federal Republic of Germany is a Central European country that is also the largest European economy and one that is a global economic powerhouse. The German economy was worth a whopping $5.3 trillion in 2022, making it the fifth largest in the world and lending it a per capital income of $63,835. The bulk of the country’s exports are services, and industry comes in second place.
German exports stood at a staggering $1.6 trillion in 2021, with the U.S. and China the country’s largest trading partners. There are 20 chipmaking facilities in the country, belonging to various countries – both German and international.
4. People’s Republic of China (PRC)
Number of Operational and Planned Fabs December 4, 2022: 70
The People’s Republic of China (PRC) is the largest country in the world when it comes to population and the second largest when it comes to the economy. It is also one of the oldest countries in the world, and has deep historical roots that stretch back to ancient times. Over the years, the People’s Republic of China (PRC) has opened itself up to foreign countries, and it is a global manufacturing hub due to abundant labor and low costs.
China’s Semiconductor Manufacturing International Corporation (SMIC) is one of the largest contract chip manufacturers in the world, and the country is also aiming to achieve self reliance in chip manufacturing this century. Fabs in China are owned by both local and international firms.
3. United States of America
Number of Operational and Planned Fabs December 4, 2022: 76
The US is one of the most prosperous and technologically advanced nations in the world. Commonly referred to as a ‘hyperpower’, the U.S. is the most powerful nation in human history when it comes to military dominance. Its air and naval forces command the skies and the sea, and it leads in aerospace, biotechnology, artificial intelligence, and semiconductor fabrication, all of which are at the forefront of today’s technological revolution.
U.S.’s crown semiconductor jewel is Intel Corporation (NASDAQ:INTC), which is credited with having invented the modern day semiconductor. Intel has some of the most advanced chipmaking facilities in the world, and it has pioneered leading transistor designs such as FinFET.
2. Republic of China (ROC)
Number of Operational and Planned Fabs December 4, 2022: 77
While the Republic of China (ROC), or Taiwan, is not recognized as a country, and its legal nature is still up for debate, it is one of the most important regions in the world. Taiwan is home to the Taiwan Semiconductor Manufacturing Company (NYSE:TSM), which is the world’s largest contract chip manufacturer both in terms of market capitalization (as of December 4th, 2022) and output. TSMC is often referred to by the Taiwanese as the ‘sacred mountain’ as the firm’s importance in global trade lends Taiwan a unique security advantage (and disadvantages as well).
Taiwan is home to some of the most advanced chipmaking facilities in the world, including the brand new 3-nanometer fabs that just entered production in the latter half of 2022.
1. Japan
Number of Operational and Planned Fabs December 4, 2022: 102
Japan is one of the most technologically advanced nations in the world, and also one of the most prosperous. Its economy was worth a massive $5 trillion in 2022, making it the fifth largest in the world in terms of purchasing power parity. Japanese exports were $729 billion in 2021 and its foreign exchange reserves of $1.2 trillion in October 2022 were the second largest in the world.
Japan also has one of the strongest semiconductor ecosystems in the world, and 102 chipmaking facilities operate in the country. These are owned by a mix of different firms, several of them Japanese as well, and others too including Taiwanese and American companies.
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