Did you know that,
1- Who’s controlling the advanced chip manufacturing in the 21st century may be similar to controlling oil supplies in the 20th century?
2- The countries that control this manufacturing can stifle the military and economic power of others.
Did you know where you can use these semiconductors?
It plays a pivotal role in the global economy, providing the components that enable a wide range of electronic devices and technologies.
The World's Largest Semiconductor Producer
Taiwan
(its own: the major production of advanced logic chips)
Taiwan is the world’s largest semiconductor producer, accounting for over 60% of global semiconductor production and more than 90% of the world’s most advanced chips. This is primarily due to Taiwan Semiconductor Manufacturing Company (TSMC). TSMC alone holds a 55% share of the global semiconductor market and manufactures chips for major global technology companies such as Apple, NVIDIA, and AMD. This dominance is supported by Taiwan’s robust and comprehensive semiconductor supply chain and state-of-the-art manufacturing facilities capable of producing sub-3-nanometer chips. Taiwan’s leading position in advanced chip production is a cornerstone of its global economic and strategic standing. As the dominant force in the global semiconductor industry, Taiwan also holds a 92% share of the world’s production capacity for the most advanced logic chips. Its semiconductor production reached US$165 billion in 2024, representing a 22% year-on-year increase.
Taiwan’s Policy to Maintain Dominance in the Global Semiconductor Market
The Silicon Shield
The term “silicon shield” refers to the strategic protection afforded by Taiwan’s dominant position in the global semiconductor industry, particularly through Taiwan Semiconductor Manufacturing Company (TSMC), which produces more than 60% of the world’s semiconductors and 90% of its most advanced chips. This dominance acts as a deterrent against Chinese military aggression, as an attack on Taiwan would severely disrupt global supply chains for critical technologies, including smartphones, artificial intelligence, and quantum computing.
The silicon shield is a weak deterrent against cross-strait conflict
Beijing might accept significant economic costs if its goal of reunification were jeopardized. From the U.S. perspective, the risk of semiconductor supply disruptions resulting from a conflict in Taiwan far outweighs the far greater costs and risks of a war between two superpowers. Moreover, US efforts to deter China through additional military buildups or displays of resolve carry the significant risk of instigating the very conflict they are meant to prevent. The best way to avoid this latter scenario is to de-escalate tensions with Beijing.
The reports also indicate that the extreme ultraviolet (EUV) lithography machines used in
maintaining its technological edge in the production of advanced electronic chips can be disabled by shutdown switches in the event of an invasion, adding another layer of deterrence.
Enhancing its asymmetric defense capabilities
such as mini-submarines, land-based missiles, and drone warfare—to withstand any invasion until external support arrives.
China
(its own: the major production of chips)
China is currently the world’s largest semiconductor market in terms of consumption.
In 2020,
China represented 53.7% of worldwide chip sales, or $239.45 billion out of $446.1 billion. However, a large percentage are imported from multinational suppliers. In 2020, imports took up over 83% ($199.7 billion) of total chip sales. In response, the country launched a number of initiatives to reduce its reliance on foreign companies : 274 To reduce reliance on foreign semiconductor companies, CICF pools resources from state investors including the Ministry of Finance, China Tobacco, China Mobile, and China Development Bank, : 274
In 2022,
The country announced a Made in China 2025 goal of 70% domestic production. China leads the world in terms of number of new fabs under construction,
With 8 out of 19 worldwide in 2021
A total of 17 fabs were expected to start construction between 2021 and 2023. Total installed capacity of Chinese-owned chipmakers was also set to increase from 2.96 million wafers per month (wpm) in 2020 to 3.57 million wpm in 2021.
In 2025,
Morgan Stanley estimated that China had a 41% self-sufficiency ratio in AI chips, up from 10% in 2020, with the number expected to increase to 86% by 2030.
South Korea
South Korea is a global leader in semiconductor manufacturing, with major companies like Samsung Electronics and SK Hynix dominating the market and significant government support driving industry growth.
The Industry Significance
Major Export Item: Semiconductors are South Korea’s largest export item, accounting for 18.9% of the country’s total exports in 2022. This highlights the critical role that the semiconductor industry plays in the South Korean economy
The Market Share
South Korea is a leader in memory chip fabrication, with Samsung Electronics and SK Hynix controlling 73% of the global DRAM market and 51% of the NAND flash market. This dominance underscores the importance of these companies in the global semiconductor landscape
The Government Support and Initiatives
Investment and Funding: In 2025, the South Korean government announced a $23.25 billion support package aimed at bolstering the semiconductor industry. This funding is intended to shield chipmakers from geopolitical pressures and U.S. tariffs while enhancing infrastructure, workforce training, and research and development for advanced chips
U.S Semiconductor Production
Market Share: As of 2020, the U.S. accounted for approximately 47% of the global semiconductor market share, showcasing its historical leadership in the industry. However, this dominance has been challenged by increasing reliance on foreign manufacturing, particularly in East Asia
Key Manufacturers
Major U.S. semiconductor companies include Intel, Nvidia, Micron, and Broadcom. These companies are not only leaders in design but are also expanding their manufacturing capabilities within the U.S. For instance, Intel plans to invest over $100 billion to enhance its U.S. fabrication facilities, aiming to produce at least 50% of the world’s advanced semiconductors domestically by the end of the decade
Employment
The semiconductor manufacturing sector directly employed around 184,600 workers in 2019, with an average wage of $166,400. This sector is expected to create tens of thousands of additional jobs as companies expand their operations
Japan’s semiconductor
Has production has seen a significant decline from nearly 50% of the global market in the 1980s to around 9% today, but the country is making strategic investments to revitalize its industry.
Historical Context
Japan was once a dominant player in the semiconductor industry, holding over 50% of the global market share in the late 1980s. However, due to various factors such as the relocation of manufacturing facilities, the rise of competitors like Taiwan and South Korea, and a focus on vertically integrated production models, Japan’s market share has dwindled to approximately 9% as of 2022
Current Landscape
Despite the decline, Japan remains a crucial part of the global semiconductor ecosystem, particularly in the areas of semiconductor materials and manufacturing equipment. Japanese companies control about 31% of the global semiconductor manufacturing equipment market, and they are leaders in key materials such as photoresists and silicon wafers
The Famous Uses
Smartphones
Qualcomm Snapdragon System-on-Chip (SoC) and Apple A-series chips use advanced semiconductor manufacturing technologies to achieve high performance and energy efficiency.
Cars
Modern cars contain more than 1,000 semiconductor chips that support various functions, including safety and performance.
Medical Devices
Semiconductors perform critical tasks in modern medical devices, including sensors and microcontrollers.
Home Appliances
Kitchen appliances like toasters and coffee makers contain an average of two or more chips each to control temperature and timing.
Smart Home Devices
Devices like Amazon Echo or Google Nest use processors from companies like Qualcomm to handle voice recognition and internet connectivity.
Semiconductors are integral to the functioning of these devices, enabling them to perform complex tasks and provide a wide range of functionalities.
In Summary
The title was: does the semiconductors can lead to the future? and in fact, it maybe leads to the third war not just a future, so, let the future answer us about who can invest in this field or it’s monopoly on whale’ Governates and persons?
Thanks for Reading…