Counting the Number of Wafer Foundries Worldwide

The surge of technology propels us into the age of information, where semiconductor chips, like the ocean, carry the modern vessel of our lives. It's safe to say that we can't imagine life without semiconductor chips anymore. Though we may not see them often, they are present in ninety-nine percent of the electronic products we use.

With such enormous demand, semiconductor factories are being constructed all over the globe to meet market needs, leading to increasingly fierce competition.

The latest "World Wafer Fab Forecast Report" released by SEMI, the International Semiconductor Industry Association, indicates that by 2023, the global semiconductor industry is expected to invest over 500 billion US dollars in building new wafer fabs. Among these, Mainland China is expected to lead with 20 new fabs, followed by the Americas, represented by the United States, with 18 fabs set for construction. In addition, Europe/the Middle East is projected to have 17 new fabs, Taiwan, China will begin construction on 14 new fabs, and Japan and Southeast Asia are expected to build 6 new fabs. South Korea is expected to have 3 new fabs.

Now, the question arises: how many wafer fabs are there in the world, and which country has the most?

Let's go through the top ten countries or regions, including Taiwan, China. It's important to note that the numbers listed here are as of December 2022, including factories under construction.

10th Place: Israel

Israel, a country located in Western Asia, with a population of less than ten million, boasts one of the world's largest ecosystems for entrepreneurship. As an economic and technological hub, Israel has four semiconductor wafer fabs. Two of them belong to the US chip manufacturing giant Intel, and the other two belong to Tower Semiconductor. However, Intel is in the process of acquiring this Israeli chip manufacturer.

9th Place: Netherlands

A net exporter with substantial account surpluses, the Netherlands enjoys credibility in the global financial market. Some of the world's largest multinational companies are also located in the Netherlands. ASML, headquartered here, is one such company. ASML, like Intel, Qualcomm, and TSMC, is one of the world's largest semiconductor companies. ASML is the only company in the world capable of manufacturing high-end machines for printing semiconductors. The progress of the chip industry depends on these machines, so they are always in short supply. These machines can even determine a country's level of semiconductor development.

8th Place: Malaysia

A Southeast Asian country, Malaysia gained independence from Britain in 1957 and united with other colonies, including Singapore, in 1963, before Singapore was expelled from the alliance. Malaysia is also an exporter of semiconductor and natural resource products.

The country has seven semiconductor factories, four of which belong to German companies Infineon and Osram Licht. Another belongs to a Belgian company, and two belong to Malaysia.

7th Place: United Kingdom

The UK is home to one of the world's most important semiconductor design companies, Arm. Arm's products are the core of most smartphones globally, and its design is also used in data center chips. However, the country's chip manufacturing facilities are owned by Dutch and American companies.

6th Place: South Korea

Integrated circuits or semiconductors account for more than 15% of its total exports in 2021. Given that some of the largest chip companies are located in South Korea, its strength in semiconductor exports is not surprising.

The country is home to two of the world's three largest memory manufacturers—SK Hynix and Samsung. Currently, these two companies jointly control about two-thirds of the global memory market. Samsung's semiconductor foundry is one of the only two companies in the world with leading manufacturing process technology (the other being TSMC). Among the 15 semiconductor manufacturing plants in South Korea, Samsung owns 8.

5th Place: Germany

The largest economy in Europe, Germany is also an economic powerhouse globally. Most of the country's exports are in the service sector, with industry ranking second. Germany's exports reached an astonishing $16 trillion in 2021, with the United States and China as its largest trading partners.

The country has 20 semiconductor manufacturing plants, each owned by different countries.

4th Place: Mainland China

One of the oldest countries in the world, and the country with the largest population and the second-largest economy, China is one of the leading semiconductor manufacturing outsourcing companies globally. In this century, China has achieved self-reliance in chip manufacturing. Semiconductor foundries in China are jointly owned by local and international companies.

3rd Place: United States

The world's largest economy, the United States, has a unique advantage in semiconductor manufacturing environments. Arizona is one example, known for Intel's fab. It has a strong semiconductor ecosystem, with companies providing essential raw materials and universities offering tailored programs to meet Intel's needs, ensuring a continuous supply of engineers for chip manufacturing. The advantage of Arizona's ecosystem also attracted TSMC, which established its new US chip manufacturing plant in the state after examining multiple locations.

2nd Place: Taiwan, China

Taiwan, China, is home to TSMC, the world's largest contract chip manufacturer in terms of market capitalization and production volume. Its importance in global trade gives Taiwan a unique security advantage. Taiwan has some of the most advanced semiconductor manufacturing facilities globally, including the brand-new 3-nanometer wafer fab that went into production in the second half of

Second Place: 77 Facilities - Taiwan, China

Taiwan, China, is the home of TSMC, which is the world's largest contract chip manufacturer in terms of market value and production volume. Its significance in global trade endows Taiwan with a unique security advantage. Taiwan possesses some of the most advanced semiconductor manufacturing facilities globally, including a brand-new 3-nanometer wafer fab that commenced operations in the latter half of 2022.

1st Place: 102 Facilities - Japan

Japan boasts one of the most formidable semiconductor ecosystems globally, with a total of 102 chip manufacturing facilities. These facilities are jointly owned by various companies, including several Japanese firms, as well as companies from Taiwan, China, and the United States.

In this ranking, due to the unique role of Taiwan, China, in the semiconductor industry, we have listed it separately. However, if we were to combine them, China would indeed have the highest number of wafer fabrication facilities, totaling 147.

Today, competition in the semiconductor industry among nations is intensely fierce. The quantity of fabrication facilities is no longer the focal point; rather, the ability to produce high-process chips is paramount.