The global semiconductor industry is experiencing unprecedented growth, driven by surging demand for advanced technologies such as artificial intelligence (AI), electric vehicles (EVs), and high-performance computing. According to SEMI's World Fab Forecast, global semiconductor capacity is projected to expand by 6% in 2024 and 7% in 2025, reaching a record high of 33.7 million wafers per month (wpm) by the end of 2025 . This article provides an in-depth analysis of the major semiconductor wafer fabrication players, their strategic expansions, and the evolving landscape of global production capacity.
1. Taiwan: The Epicenter of Advanced Semiconductor Manufacturing
Taiwan continues to dominate the semiconductor manufacturing sector, primarily through the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is the world's largest dedicated independent (pure-play) semiconductor foundry, commanding over half of the global market for made-to-order chips .
Operations in Taiwan: TSMC's domestic facilities, including Fab 12 and Fab 14, are central to its production capabilities. The company is also expanding its Fab 18 complex in the Southern Taiwan Science Park to accommodate 3nm and 2nm process technologies .
International Expansion: TSMC is investing $12 billion in a new fab in Phoenix, Arizona, which will initially produce 5nm chips. This facility is expected to begin production by 2024, with plans to upgrade to 3nm technology subsequently .(Wikipedia)
Collaborations: In Japan, TSMC has partnered with Sony, Denso, and Toyota to establish Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto. The first phase began operations in December 2024, producing 12/16nm and 22/28nm chips, with a second phase targeting 6nm production by 2027 .(Wikipedia)
Taiwan's semiconductor capacity is projected to grow by 4.2% in 2024, reaching 5.7 million wpm .(SEMI)
2. China: Accelerated Growth Amid Technological Challenges
China is rapidly expanding its semiconductor manufacturing capabilities, supported by substantial government funding and incentives. In 2024, Chinese chipmakers are expected to increase capacity by 13% to 8.6 million wpm, with 18 new fabs commencing operations .(SEMI)
Key Players: Semiconductor Manufacturing International Corporation (SMIC) remains China's leading foundry, focusing on mature process nodes. Huawei is also developing advanced semiconductor manufacturing capabilities in Shenzhen, aiming to produce 7nm smartphone chips and Ascend AI processors .
Challenges: Despite rapid expansion, Chinese manufacturers face significant hurdles, including limited access to cutting-edge equipment due to export controls and a shortage of skilled personnel.
By 2025, China's semiconductor capacity is projected to reach 10.1 million wpm, accounting for nearly one-third of global capacity .
3. South Korea: Sustaining Leadership in Memory and Foundry Services
South Korea, led by Samsung Electronics and SK Hynix, continues to be a powerhouse in memory chip production and is making significant strides in foundry services.
Samsung Electronics: Samsung operates advanced fabs such as the V1 Line in Hwaseong and the S5 Line in Pyeongtaek, focusing on 7nm and smaller process technologies .(Wikipedia)
SK Hynix: SK Hynix is expanding its DRAM and NAND flash memory production, with new facilities in Icheon and Cheongju.
South Korea's semiconductor capacity is expected to grow by 5.4% in 2024, reaching 5.1 million wpm .(SEMI)
4. United States: Revitalizing Domestic Semiconductor Manufacturing
The United States is actively working to enhance its semiconductor manufacturing capabilities through substantial investments and policy support, notably the CHIPS and Science Act.
Intel Corporation: Intel is investing heavily in expanding its manufacturing footprint, with new fabs under construction in Arizona (Fabs 52 and 62) and Ohio (Fab 27), focusing on advanced nodes like 18A and 14A .
TSMC Arizona: TSMC's Arizona facility represents a significant step in bringing advanced semiconductor manufacturing to the U.S., with initial 5nm production planned, followed by 3nm upgrades .(Wikipedia)
GlobalWafers: Taiwan's GlobalWafers is establishing the first high-volume U.S. production of 300mm silicon wafers in Texas and Missouri, supported by a $406 million subsidy from the U.S. government .(Reuters)
The U.S. semiconductor capacity is projected to increase by 6% in 2024, reaching 3.1 million wpm .(SEMI)
5. Japan: Strengthening Semiconductor Ecosystem Through Collaborations
Japan is revitalizing its semiconductor industry through strategic partnerships and investments.
Japan Advanced Semiconductor Manufacturing (JASM): A joint venture between TSMC, Sony, Denso, and Toyota, JASM began operations in December 2024, producing semiconductors on 12-inch wafers with a monthly capacity of 55,000 units .(Wikipedia)
Government Initiatives: The Japanese government is providing substantial support to attract foreign investments and enhance domestic semiconductor capabilities.
Japan's semiconductor capacity is expected to grow by 2% in 2024, reaching 4.7 million wpm .(SEMI)
6. Europe and the Middle East: Expanding Capacity Amid Strategic Investments
Europe and the Middle East are making concerted efforts to bolster their semiconductor manufacturing sectors.
Intel's European Expansion: Intel plans to invest over €33 billion in R&D and manufacturing across the EU, including a new fab in Magdeburg, Germany, expected to commence operations between 2027 and 2030 .
GlobalFoundries: GlobalFoundries operates Fab 1 in Dresden, Germany, with a capacity of up to 80,000 300mm wafers per month, focusing on technologies of 45nm and below .
The region's semiconductor capacity is projected to increase by 3.6% in 2024, reaching 2.7 million wpm .(SEMI)
7. Southeast Asia: Emerging Hub for Specialty and Mature Node Manufacturing
Southeast Asia is becoming an increasingly important player in the semiconductor manufacturing landscape, particularly for specialty and mature node production.
GlobalFoundries Singapore: GlobalFoundries opened a new $4 billion fab in Singapore, increasing its annual production capacity by 450,000 300mm wafers, bringing the total to approximately 1.5 million wafers per year .(Investopedia)
Vanguard-NXP Joint Venture: Vanguard International Semiconductor and NXP Semiconductors are collaborating on a $7.8 billion chip manufacturing plant in Singapore, with production set to start in 2027 .(WSJ)
Southeast Asia's semiconductor capacity is expected to grow by 4% in 2024, reaching 1.7 million wpm .
Wrapping Up
The global semiconductor manufacturing landscape is undergoing significant transformation, characterized by strategic investments, international collaborations, and policy-driven initiatives. While Taiwan maintains its leadership in advanced semiconductor manufacturing, other regions are rapidly expanding their capacities to meet growing demand and ensure supply chain resilience. As the industry continues to evolve, these developments will play a crucial role in shaping the future of global technology infrastructure.
