Market research and tech consulting firm Yole Group predicts that China will have 30% of the world’s global foundry production capacity, making it the largest hub of semiconductor production. At the moment, Taiwan holds the highest output capacity at 23%, followed closely by China at 21%, South Korea at 19%, Japan at 13%, the U.S. at 10%, and Europe at 8%. According to Digitimes, China is expected to take the lead because of the massive investments in domestic semiconductor manufacturing, driven by Beijing’s goal of reaching self-sufficiency for its chip production.
In 2024, the East Asian country’s semiconductor production hit 8.85 million wafers per month, an increase of 15% from the previous year, and is projected to hit 10.1 million in 2025. China achieved this with the construction of 18 new fabs — for example, Huahong Semiconductor, and pure-play foundry based in Shanghai, just opened a 12-inch fab in Wuxi, with production beginning in the first quarter of this year.
