The Global Semiconductor Powerhouses: Top 10 Manufacturing Countries in the World
In an increasingly connected world, semiconductor manufacturing plays a pivotal role in powering our everyday devices, from smartphones to laptops and beyond. These tiny chips are the technological backbone of modern society, and the countries at the forefront of semiconductor production wield immense economic influence. We've compiled a list of the top 10 semiconductor manufacturing countries in the world, highlighting their contributions to this vital industry.
10. State of Israel
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 4
Israel, a Western Asian nation, may be small in size, with a population of just 9.6 million people, but it packs an economic punch with a GDP of $497 billion, leading to an impressive GDP per capita of $52,173. Renowned for its robust startup ecosystem, Israel houses a significant number of NASDAQ-listed companies, second only to the United States and China. The country boasts four semiconductor foundries, two of which are owned by the tech giant Intel Corporation. Furthermore, Intel's ongoing acquisition of the Israeli chipmaker Tower Semiconductor indicates the consolidation of chipmaking facilities under one banner, solidifying Israel's position in the global semiconductor industry.
9. Netherlands
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 4
The Netherlands, a European powerhouse, is densely populated, with more than 500 people residing in each square kilometer of the country. With a GDP of $1.2 trillion and a remarkable GDP per capita of $69,715, the Netherlands is a net exporter with a substantial current account surplus, making it a robust player in global financial markets. Home to ASML, one of the world's leading semiconductor companies, the Netherlands specializes in manufacturing high-end machines crucial for semiconductor production. The Euronext Amsterdam stock exchange, established in 1602, further underlines the country's historical significance in the global financial landscape. Chip manufacturing plants in the Netherlands are owned by companies like NXP and Philips, among others.
8. Malaysia
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 7
Malaysia, a Southeast Asian nation, gained independence from the United Kingdom in 1957 and later united with several colonies, including Singapore, to form Malaysia in 1963. Malaysia's GDP exceeds a trillion dollars, and the country runs a current account surplus. This nation is an exporter of semiconductors and various natural resources. Seven chipmaking plants are based in Malaysia, with four of them belonging to German firms Infineon and Osram Licht, further enhancing the country's role in global semiconductor production.
7. England and Northern Ireland
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 12
The United Kingdom of Great Britain and Northern Ireland, an European country with a rich history, is known for its contributions to the modern world. It has deep ties to the Roman Empire through its City of London financial hub, which is part of Greater London. The UK is also home to Arm Ltd, a pivotal semiconductor designer whose products are integral to the world's smartphones and data center chips. Chip fabrication facilities in the UK are owned by Dutch and American firms, among others, further solidifying the country's role in the semiconductor industry.
6. Republic of Korea (ROK)
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 15
The Republic of Korea (ROK), or South Korea, is an East Asian economic powerhouse. With a GDP of $2.7 trillion and a GDP per capita of $53,051, South Korea stands as one of the world's most prosperous nations. In 2021, South Korea's exports exceeded $644 billion, with integrated circuits, or semiconductors, comprising more than 15% of this total. The ROK is home to two of the world's largest memory manufacturers, SK Hynix and Samsung, who collectively control a significant portion of the global memory market. Of the 15 chipmaking fabs in South Korea, eight are owned by Samsung, known for manufacturing semiconductors, processors, and graphics processing units (GPUs) for its own and international devices.
As the demand for semiconductors grows worldwide, companies like Intel Corporation, QUALCOMM Incorporated, and Taiwan Semiconductor Manufacturing Company are poised for record profits in the long term.
5. Germany
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 20
The Federal Republic of Germany, located in Central Europe, stands as the largest European economy and a global economic powerhouse. In 2022, Germany's economy reached a staggering $5.3 trillion, making it the fifth-largest in the world, with a per capita income of $63,835. The bulk of the country's exports are services, and industry comes in second place. Germany's exports reached $1.6 trillion in 2021, with the U.S. and China being its largest trading partners. Germany houses 20 chipmaking facilities owned by various German and international companies, further solidifying its role in global semiconductor manufacturing.
4. People’s Republic of China (PRC)
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 70
The People’s Republic of China (PRC) is the world's most populous country and the second-largest economy. China's deep historical roots and global outreach have led it to become a major manufacturing hub due to abundant labor and low production costs. China's Semiconductor Manufacturing International Corporation (SMIC) is one of the largest contract chip manufacturers in the world. The country aims to achieve self-reliance in chip manufacturing, as reflected in its 70 operational and planned fabs owned by both local and international firms.
3. United States of America
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 76
The United States, a prosperous and technologically advanced nation, is often referred to as a 'hyperpower.' It leads in numerous fields, including aerospace, biotechnology, artificial intelligence, and semiconductor fabrication. Intel Corporation, credited with inventing the modern-day semiconductor, stands as the U.S.'s crown semiconductor jewel. It boasts some of the world's most advanced chipmaking facilities and has pioneered leading transistor designs such as FinFET.
2. Republic of China (ROC)
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 77
The Republic of China (ROC), or Taiwan, is a region of global importance. Taiwan is home to the Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chip manufacturer, both in terms of market capitalization and output as of December 4th, 2022. TSMC is often referred to as the 'sacred mountain' by the Taiwanese, signifying its vital role in global trade. Taiwan hosts some of the most advanced chipmaking facilities globally, including brand-new 3-nanometer fabs that entered production in the latter half of 2022.
1. Japan
Total Operational and Planned Semiconductor Fabrication Facilities (End of 2022): 102
Japan, one of the world's most technologically advanced and prosperous nations, is known for its massive economy worth $5 trillion in 2022. This places Japan as the fifth-largest economy in the world in terms of purchasing power parity. Japanese exports reached $729 billion in 2021, and its foreign exchange reserves of $1.2 trillion in October 2022 were the second-largest globally. Japan's semiconductor ecosystem is among the world's most robust, with 102 chipmaking facilities owned by a mix of different firms, several of them Japanese, as well as international companies.
In conclusion, these top 10 semiconductor manufacturing countries represent the pillars of technological advancement and economic prowess in our interconnected world. Their collective contributions to the semiconductor industry not only power our devices but also shape the future of innovation. As the demand for semiconductors continues to surge globally, the importance of these nations in driving progress cannot be overstated. Whether it's Japan's extensive semiconductor ecosystem, the innovation in the Republic of China (Taiwan), or the cutting-edge facilities in the United States, each of these countries plays a unique and indispensable role in this ever-evolving field. Their influence extends far beyond national borders, resonating in the devices we use daily and the technological landscape that lies ahead.