Semiconductor Manufacturing- Taiwan’s Dominance

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https://asiatimes.com/2022/06/taiwans-advanced-technology-makes-it-indispensable/

https://anysilicon.com/semiconductor-foundry/

https://www.hitachi-hightech.com/global/products/device/semiconductor/about.html#:~:text=Semiconductors%20are%20substances%20with%20properties,Silicon%20forms%20most%20of%20ICs.

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Taiwan is home to a huge number of semiconductor companies including the Taiwan Semiconductor Manufacturing Company, which is the world’s largest foundry for semiconductors. Although a number of semiconductor manufacturing companies including Intel and AMD produce a large amount of semiconductors for use in electronics around the world, Taiwan is significant in its operations. As world technology, connected IoT devices and population increase, demand for semiconductors will increase and companies will need to scale their operations.

Amazingly, Taiwan is spending 52% more this year on production equipment for its semiconductor operations and the trend shows that Taiwan will continue to dominate in the industry. The USA is fourth globally in semiconductor production following China. Semiconductors are required for electronic devices to function and are a part of computers that facilitate everything from trade to medical operations.

A semiconductor foundry is a production facility for silicon wafers that become semiconductors used in electronic devices. Foundries can produce wafers and integrated circuits (IC) for companies or for a single entity. Taiwan Semiconductor is a “pure-play” manufacturer of semiconductor wafers and makes wafers and IC for clients with contracts. A key factor that created the foundries in Asia was a mismatch between supply of wafers and demand. Companies including Intel and AMD produce their own semiconductors on wafers at their foundries which can give them exclusive process controls over their internal manufacturing.

As global demand for semiconductors increases, the market for semiconductor production is projected to increase to $62 billion by 2026. Emerging technologies including AI and 5G and population growth that drives growth in demand for electronics will increase demand for semiconductors. Amazingly, 80% of semiconductor projects go over schedule due to production issues. Foundries are working hard to meet production, and Taiwan is at the center of global semiconductor production for companies around the world. A very real figure to consider is that with the internet of things (IoT), there are believed to be 50 billion connected devices as of 2020 and all of these require semiconductors made at foundries. The strength of a “pure-play” company employing their foundry is that it can handle multiple client orders and refine its operations to scale them.

As demand for AI, 5G and IoT devices increase, so will demand for semiconductors. Taiwan is key to global IC production and their ability to scale along with their continuous investment into IC production make them a powerhouse. Semiconductor manufacturing is an essential and lucrative field with a large share outside of the USA.

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