Daniel Slotta
Research expert covering Greater China
Semiconductors in Taiwan - statistics & facts
There are not many industries where the capabilities of the product increases as its size decreases. However, with semiconductors, that is the case, and Taiwan is excellent at producing small and cutting-edge computer chips. Semiconductors are one of the key parts of the modern global economy. Over the past years, with the supply chain disruptions during the coronavirus pandemic, the demand spikes from the cryptocurrency and AI boom, and geopolitical tensions, the importance of semiconductors has become apparent, spotlighting Taiwan and its chip industry.
Strength through uniqueness
The global semiconductor supply chain relies on a segmented global network of suppliers and manufacturers, with the island of Taiwan playing a key role. The United States is home to fabless companies, with Japan and the Netherlands building semiconductor equipment, and Taiwan taking on the assembly and testing process. While producing semiconductors is easy, achieving high-end quality is not, and the island is home to the most advanced semiconductor manufacturers in the world. This puts Taiwan in a uniquely advantageous position in an economic as well as in a geopolitical aspect.Taiwan’s flagship company
TSMC is not only the largest chip design and manufacturing enterprise in Taiwan but also the world’s largest supplier of semiconductors. In 2024, TSMC had a global market share of 58 percent and an impressive client portfolio. With over 25 percent, Apple accounted for the largest share of the company’s revenue. Apple collaborated with TSMC to develop its computer chips that power the latest generation of MacBooks after the tech company ditched Intel in 2021. This shows TSMC’s large production capacities along with the technical know-how to manufacture cutting-edge products.The price of success
After all, the rapid expansion of the chip industry comes at a cost, and semiconductor manufacturing has a big impact on the environment and its effects on the local population. Producing chips is a very resource- and energy-intensive process. The electricity consumption of TSMC alone accounts for around five percent of the region’s energy use and consumes 156 thousand tons of water every day. As Taiwan faced a shortfall of rain recently, TSMC began bringing in water via trucks. As a result, the question of whether Taiwan is capable of meeting the world’s demand for semiconductors depends not only on its manufacturing capacity and supply chain stability but also on its ability to absorb the negative externalities.
