Why it issues: According to Trendforce, Taiwan will management 48% of the worldwide foundry capability in 2022, making it the undisputed chief. Even with the rising variety of international locations attempting to deliver semiconductor manufacturing inside their borders, it is anticipated that this determine will solely drop to 44% by 2025.
Following the previous few years of chip shortages attributable to pandemic shutdowns and geopolitical turmoil, increasingly more governments are attempting to create native chip manufacturing industries. Many of them are turning to Taiwanese corporations to assist them arrange their factories.
This is as a result of Taiwan is essential to the worldwide semiconductor provide chain, accounting for a 26% market share of the full semiconductor income in 2021, rating it second worldwide. The nation instructions a 27% and 20% market share within the IC design and the packaging and testing industries, respectively. It additionally accounts for a staggering 64% of the worldwide foundry income.
TSMC at the moment possesses probably the most superior course of know-how, and it plans to maintain many of the manufacturing of future N3 and N2 nodes in Taiwan. Meanwhile, different Taiwanese foundries like UMC, Vanguard, and PSMC cowl functions that do not require bleeding-edge nodes, equivalent to automotive and IoT.
Currently, Taiwan has probably the most 8-inch and 12-inch fabs, 24 of them, adopted by China, South Korea, and the US. As far as future foundries go, Taiwan nonetheless tops the listing with six, adopted by China with 4, whereas the US plans to construct three new fabs.
Even so, Trendforce expects that Taiwan will nonetheless management 44% of the world’s foundry capability by 2025 and as a lot as 58% of the worldwide capability for superior processes (16 nm and under).