Introduction
The global semiconductor industry has experienced massive changes over the past 30 years. Once dominated by the United States and Europe, today’s Global semiconductor production is increasingly centered in Asia. According to VLSI Research projections and analysis by BCG and J.P. Morgan, this trend will continue through 2032.
Let’s dive into the key shifts in semiconductor production by country from 1990 to 2032F, and what this means for the future of the industry.
techovedas.com/how-silicon-carbon-batteries-are-the-next-revolution-in-smartphone-power
Quick Overview
U.S. share drops from 44% (1990) to 14% (2032F).
Europe declines from 37% to 8% in the same period.
Japan peaks at 24% in 2000, falls to 13–14% later.
South Korea and Taiwan grow into global leaders.
China rises sharply to 22% by 2032F.
https://www.linkedin.com/company/techovedas
Background
Semiconductors power everything—from smartphones and laptops to cars and industrial machines. In 1990, U.S. and European companies led production. However, cheaper manufacturing costs, government incentives, and aggressive investments helped Asian countries catch up.
The global chip market was valued at around $100 billion in 1990. Fast forward to 2024, and it is projected to surpass $600 billion, with estimates pointing toward $1 trillion by 2030 (Source: SIA, BCG).
techovedas.com/8-major-steps-of-semiconductor-fabrication
Global Semiconductor Production by Country (1990–2032F)
(Source: VLSI Research, BCG, J.P. Morgan Asset Management, May 2024) (F: Forecasted)
techovedas.com/8-major-steps-of-semiconductor-fabrication
Key Trends and Insights
1. U.S. Losing Ground
The United States dominated in 1990 with 44% of global semiconductor production. Offshoring and rising costs shrank this lead. Even with major incentives like the CHIPS Act, the U.S. is forecasted to reach only 14% by 2032.
2. Europe’s Slow Decline
Europe’s production has steadily fallen, from 37% in 1990 to just 8% projected for 2032. Efforts like the European Chips Act (€43 billion investment) aim to regain ground but face tough global competition.
3. Japan’s Rise and Fall
Japan was a semiconductor powerhouse, peaking in 2000. However, competition from South Korea and Taiwan led to a fall to around 13% by 2032.
4. South Korea and Taiwan’s Dominance
South Korea’s Samsung and SK Hynix, and Taiwan’s TSMC, now rule advanced chip manufacturing. Taiwan alone is responsible for over 60% of global foundry revenue as of 2024.
5. China’s Rapid Growth
Backed by huge government investments, China grew its share to 15% in 2020 and is set to hit 22% by 2032. However, sanctions on advanced chipmaking equipment slow China’s move into cutting-edge technologies.
Conclusion
Semiconductor production by country has shifted massively from the West to Asia since 1990. As technology needs grow—especially with AI, 5G, and electric vehicles—the race to control chip production will define global competitiveness in the coming decades.
Countries that invest early and secure domestic chip manufacturing will lead the next era of digital innovation.
For more of such news and views choose Techovedas! Your semiconductor Guide and Mate!
