Chinese wafer manufacturers control 75% of the global chip foundry market
According to **, by 2023, the global chip foundry output value will fall by 12% to 1248$1.5 billion. More than two-thirds of the world's chips are produced by foundries, and that percentage is rising.
This also means that the importance of foundries is increasing day by day.
What is the current global landscape? According to the China Academy of Industrial Sciences, by 2023, TSMC will account for 55% of the global chip foundry market, becoming the most important Chinese company.
It is followed by Samsung, UMC, GECHIP, SMIC, Hua Hong, Qualcomm, SMIC, SMIC, Intel, and Powerlog.
There are two U.S. companies, one South Korean company, two Chinese companies, and five Taiwanese companies in the top 10. This means that China actually owns seven companies.
In terms of market share, seven Chinese companies account for more than 75% of the market share, or three-quarters of the world's chips.
Of course, in China, Taiwanese companies account for the vast majority of the share, accounting for more than 65% of the global market, while Chinese mainland companies account for only about 10%.
Of course, the market share of American chipmakers is not large, only 8%, which is even lower than the Chinese mainland market.
Why are Chinese chip companies so strong in the chip foundry market? On the one hand, American chip companies pay more attention to chip design and high value-added products such as EDA, while Chinese mainland and Taiwan are not, because the United States believes that the added value of chips is too low.
Another reason is that China has abundant resources such as factories, electricity, hydropower, etc., as well as a huge labor force and a developed industrial system, which makes China's construction and operating costs among the lowest in the world.
However, as the importance of chip foundries grew, the United States began to take notice. Previously, they thought that they only needed to design the chip, and the rest could be left to others to do, so as to reduce costs and make more profits.
But now, the United States has realized that its chip industry has been hollowed out and is likely to be limited by China's production capacity in the future, so it has introduced various subsidy policies.
However, as China has become the world's chip production center, it is clear that the recovery of the US chip industry is struggling.