In recent years, the world has faced increasing tensions, and geopolitics has gradually become a key factor for the semiconductor industry. With the enforcement of ‘chip acts’ and semiconductor policies by various nations, manufacturers are now obligated to establish 'China + 1' or 'Taiwan + 1' production strategies.
It is seen that geopolitical transformations are fundamentally redefining the landscape for vital electronic components. Long-term strategies are now focused on self-reliance, security, and control within the supply chain, thus transitioning the industry from global collaborations to multi-regional competitions.
Giants in this industry are strategically positioning themselves by spearheading cutting-edge processes with gradual effects on the current component production methods. The US is already positioned to make progress in the advanced process domain. China has seen rapid growth in mature processes due to domestic demand and national policies, while Taiwan's market share is anticipated to decline. However, the Taiwanese giant TSMC, which makes 50% of the world's semiconductor chips, has started expanding its base by recently opening its first factory in
Japan.
In the sphere of semiconductor assembly and testing, influenced by geopolitics, technological advancements, and skilled workforce, leading integrated device manufacturers in the US and Europe are channeling increased investments into the Southeast Asian market, which is forecasted to play an increasingly significant role in the semiconductor assembly and test market, particularly in nations such as Malaysia and Vietnam.
However, semiconductor chips have no functionality until they are packaged and placed on PCBs by electronics manufacturers who assemble systems. At the turn of the century, 30% of the world’s supply of PCBs was made in the US and but is presently reduced to only 4%. The US industry is now pushing the authorities for funding to restore leadership in this strategically vital industry.
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(The article is based on this LinkedIn announcement and edited by T.Sollie)