Industrial Electronics

Trends in advanced semiconductor production

15 April 2024
Source: TrendForce

Advanced semiconductors are driving innovation across diverse industries, powering devices from smartphones to healthcare equipment. Growth in foundry capacity for these components, which refer to nodes smaller than 16/14 nm, is tracked in this chart.

Taiwan holds 68% of advanced foundry capacity, though this is expected to fall to 60% by 2027 as the U.S. expands its domestic capacity. Taiwan Semiconductor Manufacturing Co. (TSMC) tops the list of the largest producer of advanced semiconductors, earning 60% (or nearly $17 billion) of semiconductor foundry revenue in the first quarter of 2023. Its revenue jumped to $19.7 billion in the last quarter of the year due to smartphones, notebooks and artificial intelligence (AI)-related high-performance computing.

[See also: Where new semiconductor fabs are being built]

Japan is also increasing its share in the industry, with Rapidus Corp. aiming to produce 2 nm chips by 2027. The U.S. share of advanced process capacity is expected to increase from 12% to 17% by 2027, although over half of this capacity will come from foreign companies operating in the U.S., such as Samsung or TSMC.

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