Semiconductor industry in the Asia-Pacific region - statistics & facts
When the global chip shortage first made headlines in early 2020, many end-users were familiarized with semiconductors and their importance across various industries. While the term semiconductor alone refers to an electrically conductive material, it is often used synonymously with the final products of the semiconductor industry, such as transistors and integrated circuits (ICs), commonly known as microchips. These semiconductor devices are essential in manufacturing virtually all modern electronic applications, including smartphones and personal computers. In recent years, global semiconductor sales have surpassed 500 billion U.S. dollars. Despite the industry's size and importance, only a select few markets are relevant in the design and fabrication process of semiconductor devices worldwide – four of them located in East Asia.
The global fabless IC design market is mainly dominated by U.S. companies, like Qualcomm and Nvidia, alongside Taiwanese companies, such as MediaTek, Novatek, and Realtek. MediaTek accounts for almost a quarter of the fabless company market share in the Asia-Pacific region.
At the same time, Asia is the main semiconductor manufacturing hub. Taiwan, South Korea, and China are responsible for more than 90 percent of global semiconductor foundry revenue, with Taiwan alone holding over 60 percent market share. Most of this share can be attributed to the world's largest pure-play semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC). Founded in 1987, TSMC generates over two trillion New Taiwan dollars in annual revenue and manufactures for client companies, including Apple, Sony, and MediaTek.
South Korea's integrated device manufacturers Samsung Electronics and SK Hynix are among the leading semiconductor vendors globally.
Fabless companies, foundries, and IDMs
The design, fabrication, and sale of semiconductor devices are often allocated across different companies. So-called fabless companies design semiconductor devices while outsourcing the fabrication to foundries, also known as fabs. Companies that solely handle all steps of the production process are referred to as integrated device manufacturers (IDMs).The global fabless IC design market is mainly dominated by U.S. companies, like Qualcomm and Nvidia, alongside Taiwanese companies, such as MediaTek, Novatek, and Realtek. MediaTek accounts for almost a quarter of the fabless company market share in the Asia-Pacific region.
At the same time, Asia is the main semiconductor manufacturing hub. Taiwan, South Korea, and China are responsible for more than 90 percent of global semiconductor foundry revenue, with Taiwan alone holding over 60 percent market share. Most of this share can be attributed to the world's largest pure-play semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC). Founded in 1987, TSMC generates over two trillion New Taiwan dollars in annual revenue and manufactures for client companies, including Apple, Sony, and MediaTek.
South Korea's integrated device manufacturers Samsung Electronics and SK Hynix are among the leading semiconductor vendors globally.
