Taiwan will dominate the chip production market in the near future

Taiwan is a leader in the world semiconductor production market, controlling 46% of the foundry market and 61% of the world capacity of 16 nm transistors and less. This is reported by the company TrendForce.

In 2021 Taiwan received 26% of world income from semiconductors production and 64% of income from foundry. Trendforce forecasts, in 2022, the global foundry will increase by 20%, to $128.7 billion – and the share of Taiwan’s income will also increase by two points.

Famous local manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) will increase its share from 53%to 56%and the other-United Microelectronics Corp. At the time, the less known Powerchip Semiconductor (PSMC) will lose one item in income.  

Despite the fact that the US and Europe have recently decided to actively finance the development of new chip production capacities, these efforts will change little in the short term. By 2025, it is projected to expand the Taiwanese manufacturers will keep 44% of the global foundry, 47% of the production of 12-inch plates and 58% of the advanced production process.

Taiwan plans to expand the production of chips were the construction of new capacities in China. However, TSMC also planned to open new factories in the US, Japan and at home. UMC expands available factories in Singapore and Taiwan. PSMC and Vanguard build new capacities within their country.

Building businesses in China, Taiwanese manufacturers run the risk of technological and economical espionage. Therefore, they are still focused on “home” developments, research and expansion of production.

Trendforce, Taiwan will keep its market share because it has been building an ecosystem for chip production for years. Although competitors, such as Intel, seek to reduce their dependence on Asian chips and restore foundry plants in the US and Europe, it takes time. Taiwan is ready to use it.

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