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2 Charts Show how much the World Depends on Taiwan for Semiconductors

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Taiwans outsized role in chipmaking has come under the spotlight as a global shortage of semiconductors forced several automakers to halt production. Countries including the U.S. and Germany reached out to Taiwan to help alleviate bottlenecks in the production of chips. The shortage was a result of increased demand for electronics during the Covid19 pandemic, and was exacerbated by former President Donald Trumps trade war with China.

Taiwan dominates the foundry market, or the outsourcing of semiconductor manufacturing. Its contract manufacturers together accounted for more than 60 of total global foundry revenue last year, according to data by Taipeibased research firm TrendForce. Much of Taiwans dominance can be attributed to Taiwan Semiconductor Manufacturing Co or TSMC, the worlds largest foundry that counts major technology firms such as Apple, Qualcomm and Nvidia as its clients. TSMC accounted for 54 of total foundry revenue globally last year, TrendForce data showed.

Semiconductors are critical components that power electronics from computers and smartphones to the brake sensors in cars. The production of chips involves a complex network of firms that design or make them, as well as those that supply the technology, materials and machinery to do so. TSMC focuses solely on manufacturing and has been the goto producer for many cuttingedge semiconductors, Dan Wang, a technology analyst at research firm Gavekal, said in a podcast by Singapores DBS bank….

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