Taiwan's Dominance in Advanced Semiconductors is Expected to Shrink

What we’re showing

Advanced foundry capacity by country, for 2023 and 2027 (forecast). This data comes from TrendForce, and was published in Dec 2023.

Advanced vs. mature processes

Advanced manufacturing processes refer to ≤16/14 nanometer (nm) nodes. Smaller transistors allow manufacturers to pack more of them onto a single chip, increasing processing power and efficiency.

For example, the iPhone 15 Pro uses Apple's first chip manufactured with a 3nm process, while the Playstation 5 uses a 6nm chip.

Mature processes (28nm and older) are cheaper to produce and are used in products that don’t require significant computing power. This includes home appliances and fitness trackers.

Taiwan still #1 for foreseeable future

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. Japan is also getting into the mix, with Rapidus Corp. aiming to produce 2nm chips by 2027.

Meanwhile, in response to export controls on advanced chip making equipment by the U.S., China is focusing on mature processes.