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Who is The Largest Manufacturers of Microchips in the World?
TECHNOLOGY Beyond

Who is The Largest Manufacturers of Microchips in the World?

According to data from the UN, China produces the most semiconductor chips worldwide.

China has developed into a significant worldwide production hub for microelectronics, and the electronics value chain, which encompasses consumer electronics and ICT, has become more regionalized over time.

South Korea, Singapore, Malaysia, the United States, Japan, Germany, the Philippines, the Netherlands, and Thailand are further notable manufacturers.

The statistics for China specifically include the production from Hong Kong and Macao.

A chip may cross national boundaries numerous times during the product development cycle, according to a US Congress research of the worldwide commerce in semiconductor chips that incorporates cross-border design and manufacturing procedures.

Taiwan and South Korea, for instance, have sizable manufacturing capacities, and other East Asian nations are prominent players in assembling, testing, and packaging.

Key intermediate ICT components are heavily exported from several East Asian economies.

Compared to roughly 50% in 2005, integrated circuits and semiconductor exports from Asia accounted for about 70% of the entire value of exports in 2018. These components are utilized in almost all electronic products.

The fact that intermediate and finished goods might frequently traverse international boundaries before being exported can affect trade data.

Due to the concentration of production and export activity in several nations as a result of the location of some of the biggest IC/semiconductor businesses. 

Above all, China is developing into a significant hub for the production of essential electrical components.

China's global share of the overall export value of semiconductors and printed circuit boards climbed from 16 to 33 percent between 2005 and 2018.

Although their percentage of the total export value has grown, printed circuit boards still account for the majority of China's added value.

Keterangan Gambar (© Pemilik Gambar)

For the time being, Mainland China, Hong Kong, and Taiwan continue to be major producers of microchips, giving them control over 50% of the global export market. The most recent year for which complete data is available, the fiscal year of 2020, shows that Greater China's exports of microchips were slightly under $400 billion.

In the same year, the United States sold semiconductors worth about $44 billion, ranking seventh globally in a market dominated by Asia despite the significant decrease. Exports from Greater China increased once more in 2021, reaching $522 billion, while exports from the United States increased to $53 billion.

Nearly 40% of semiconductors were still made worldwide in the United States and Europe, respectively, as recently as 1990. However, the development of more affordable manufacturing facilities in Asia set off a trend that quickly altered the traditional origin of semiconductors.

By 2000, Japan, South Korea, and Taiwan accounted for the majority of the remaining manufacturing of chips, with the United States and Europe contributing just slightly more than 40% of the total. By 2020, it was anticipated that mainland China will have increased to account for up to 25% of world production, dislodging rivals simultaneously from the U.S., Europe, and Asia.

In response to the Covid-19 pandemic's supply chain problems, several nations launched programs to increase domestic production of the vital component. Japan and the EU had already made plans to increase domestic chip production before the U.S.

Source: Statista.com, Opportimes.com

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