By Owais AliApr 11 2024Reviewed by Lexie Corner The semiconductor industry has evolved significantly since the late 1950s, expanding globally due to rising demand, technological advancements, and cost-effective production. Countries are now competing to establish themselves as key players in semiconductor manufacturing, recognizing its importance for economic growth, technological leadership, and national security.
These nations have invested heavily in building state-of-the-art fabrication facilities and developing a robust supply chain ecosystem, making them indispensable players in the global semiconductor industry. Samsung Electronics Samsung is a powerhouse in the semiconductor industry, with a market cap of $376.4 billion.2 Its semiconductor manufacturing division is a core business that manufactures memory chips like DRAM, NAND flash storage, and logic chips.
Key Countries Leading in Semiconductor Production While semiconductor manufacturing is a global endeavor, certain countries have emerged as dominant players thanks to their technological infrastructure, supportive government policies, and thriving innovation ecosystems. South Korea Semiconductor manufacturing is a major economic industry in South Korea, initially introduced through foreign direct investment by US companies in the mid-1960s. Domestic companies began investing in their production in the 1980s, with Samsung Electronics and SK Hynix emerging as leading semiconductor manufacturers globally.4
The US's semiconductor industry heavily influences the global market, particularly through export controls on certain electronic design automation software types. In 2021, Japan's Ministry of Economy, Trade, and Industry announced a core strategy for its semiconductor and digital industries, focusing on forming partnerships with the US, developing future semiconductor technologies through the establishment of the leading-edge semiconductor technology center and R&D center, encouraging chip manufacturing bases like Japan advanced semiconductor manufacturing with TSMC, and providing subsidies for domestic chip production.
Taiwan produces approximately 50 % of the world's semiconductors, while South Korea hosts a vast network of over 20,000 semiconductor-related companies, with Samsung leading as the largest producer by revenue, holding a 17 % share of the global foundry market.9