The semiconductor industry is the backbone of the global digital economy, powering everything from smartphones and laptops to AI systems and automobiles. In 2024, semiconductor manufacturing remains heavily concentrated in a few key countries, with Taiwan, South Korea, Japan, the United States, and China dominating the global landscape.

Semiconductor Manufacturing by Country (2024)

Country	Number of Plants	Advanced Processes Market Share (2023)	Key Highlights
Taiwan	80	68%	Home to TSMC, which holds ~50% of global foundry market; vital for Apple, AMD.
South Korea	17	17%	Dominated by Samsung and SK Hynix; strong in memory chips and advanced logic.
Japan	103	–	Leading in semiconductor equipment (30% global share); increasing fab capacity.
USA	95	12%	Commands 46% of global chip sales; limited domestic fabrication capacity.
China	81	8%	Growing rapidly in chip production; projected to reach 25% global share by 2030.

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Taiwan: The Global Semiconductor Epicenter

Taiwan remains the undisputed leader in advanced semiconductor manufacturing, driven by the dominance of Taiwan Semiconductor Manufacturing Company (TSMC). As of 2023, 68% of the global market share in advanced processes (7nm and below) is held by Taiwan. TSMC alone manufactures chips for global tech giants like Apple, AMD, and Qualcomm, making Taiwan a critical node in global supply chains.

TSMC accounts for over 50% of the global semiconductor foundry market, producing high-performance chips that power cutting-edge technologies.

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Other Key Players in the Semiconductor Race

South Korea

• Home to Samsung Electronics, which competes closely with TSMC in logic and memory chip production.
• Controls 17% of the advanced semiconductor market, focusing on both DRAM and NAND technologies.
• Plans to invest over $200 billion in domestic fabs over the next decade.

Japan

• Though not dominant in chip fabrication, Japan plays a pivotal role in the semiconductor equipment segment, producing about 30% of global semiconductor manufacturing tools.
• Key suppliers include Tokyo Electron and Nikon.
• Japan is scaling up its production capacity in collaboration with companies like TSMC and Rapidus.

United States

• Leads in design and intellectual property with companies like Intel, Nvidia, and Qualcomm.
• Has 46% of global semiconductor sales, but only a 12% share in manufacturing due to offshoring over the last three decades.
• The CHIPS and Science Act aims to revive domestic production with $52 billion in subsidies.

China

• Operates 81 fabs, rapidly growing its manufacturing capacity despite facing restrictions on advanced technologies.
• Currently holds 8% share in advanced processes, but is expected to rise to 25% by 2030, thanks to aggressive investment and state support.

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Conclusion: A Concentrated Yet Shifting Industry

The global semiconductor industry is both highly strategic and concentrated, with five countries accounting for the majority of global production. While Taiwan leads in technology and advanced manufacturing, others are catching up through policy support, partnerships, and capital investment.

However, this concentration also presents risks, especially as geopolitical tensions and supply chain disruptions could impact global technology infrastructure. Diversification, technological partnerships, and localized ecosystems will be key themes shaping the next decade of the semiconductor race.