Taiwan will continue to centralize almost half of the world’s chip production, and this is what the market analyst reveals trend strengththe many investments in foundries around the world will not excessively affect Taiwan’s dominance, and that is that although it is expected that this year 48 percent fleas produced in the world are “Made in Taiwan”, by 2025 most new factories or expansions are already mass producing in other parts of the world, such as the United States, China, Japan or Europe, Taiwan will continue to lead the manufacturing chip far and wide with 44% of world production.
Taiwan, which occupies the first position, represents 64% of the foundry market. Apart from the fact that TSMC has the most advanced manufacturing process technology at present, foundries such as UMC, Vanguard and PSMC also have their own lithographic advantages. Under the looming shadow of the chip shortage caused by the pandemic and the geopolitical turmoil of the past two years, several governments have been quick to realize that the localization of chip manufacturing is necessary to avoid being cut off from chip supply due to logistical difficulties or cross-border transport bans. Taiwanese companies have jumped on this wave to become partners that governments around the world are eager to invite to set up factories in various locations.
By 2022, Taiwan will account for approximately 48% of the world’s 12-inch wafer production capacity. If we only take into account the production capacity of 12-inch wafers with more than 50% market share, the market share of advanced processes below 16nm (inclusive) will reach 61%. However, as Taiwanese manufacturers expand production globally, TrendForce estimates that Taiwan’s local foundry capacity market share will decline slightly to 44% in 2025, of which the production capacity market share of the Taiwanese 12-inch wafer foundry will fall to 47% and that of advanced manufacturing processes to about 58%. However, recent Taiwanese foundry production expansion plans remain focused on Taiwan, including TSMC’s most advanced N3 and N2 nodes, while companies such as UMC, Vanguard and PSMC maintain several new factory projects. in the Taiwanese cities of Hsinchu, Miaoli and Tainan.
TrendForce believes that since Taiwanese foundries have announced plans to build factories in China, the United States, Japan and Singapore, and foundries in many countries are also actively increasing production, Taiwan’s market share in in terms of foundry manufacturing capacity will decline slightly in 2025. However, Taiwan has advantages in terms of talent, geographic convenience, and industrial locations. Therefore, Taiwanese foundries always tend to focus on Taiwan for R&D and production expansion. Under the current production expansion plan, Taiwan will still control 44% of global foundry capacity in 2025 and up to 58% of global advanced processing capacity, continuing to dominate the global casting industry. semiconductors.