Where Are Semiconductor Fabs Currently Being Built Around the World?

Article Highlights:

• Semiconductors now function as both an economic foundation and a geopolitical flashpoint. COVID-19 demonstrated the costs of shortages, while U.S.-China competition has placed semiconductor manufacturing at the center of trade and national security policy.
• In the United States, seventeen fabs are currently either planned or under construction. Many of these facilities are focused on advanced semiconductor manufacturing, with Samsung Foundry and TSMC planning production sites focused on manufacturing 4 nm and 5 nm nodes. Across Asia—including Japan, Singapore, India, South Korea, and Taiwan—23 new fabs are in development, most scheduled to begin production by the end of 2025.
• Many of the new fabs are prioritizing advanced semiconductor nodes, which are generally defined as chips below 7 nm. Chips at these scales are central to a wide range of applications, from consumer electronics like laptops and smartphones to the high-performance processors used in data centers that power AI workloads and advanced computing.

The global supply chain for semiconductors has grown increasingly fragile. The COVID-19 pandemic exposed the risks of concentrating semiconductor manufacturing in a few regions, while U.S.–China trade tensions have placed semiconductors at the center of a strategic competition.

During the pandemic, surging demand for electronics collided with factory shutdowns across Asia, home to the majority of global semiconductor production. These disruptions left companies facing long lead times and significant shortages, particularly in industries like automotive and consumer electronics.

Concerns over semiconductors now extend beyond supply and demand, however. National security, export restrictions, and the geographic concentration of advanced semiconductor manufacturing in East Asia all underscore the risks of relying too heavily on foreign sources.

A Five-Year Snapshot of Semiconductor Supply Chain Fragility

How COVID-19 Highlighted Chip Dependencies

The pandemic marked a turning point in global awareness of chip supply chain risks.

Lockdowns disrupted production at the same time that demand for PCs, smartphones, and gaming consoles surged. Automakers, expecting a prolonged slowdown, cut their chip orders—only to find themselves unable to secure supply when demand rebounded faster than originally forecast.

These dynamics left companies waiting months for critical components. Even large manufacturers struggled to access the chips they needed. Automotive and consumer electronics firms often found themselves in direct competition for limited capacity, underscoring the fragility of supply chains.

The Trade War Impact on Semiconductor Manufacturing

Beyond market forces, semiconductors have become a source of tension and struggle in the context of U.S.-China relations. Over the past several years, both governments have taken steps to protect their domestic industries and restrict access to critical technologies.

Timeline of Key Policies (2020-2025)

• May 2020: The U.S. Commerce Department restricted shipments of semiconductors to Huawei, limiting its access to advanced chips. The FCC also designated Huawei a national security risk, barring U.S. firms from using federal funds to purchase its equipment.
• August 2022: President Biden signed the CHIPS and Science Act, allocating about $52 billion to strengthen U.S. semiconductor manufacturing and research.
• October 2022: The U.S. announced export controls restricting China’s access to advanced semiconductors used in artificial intelligence and supercomputing, citing national security concerns.
• December 2022: The U.S. added Chinese firms, including memory chipmaker YMTC, to the Entity List, limiting their access to American semiconductor technology.
• May 2023: China banned the use of Micron chips in key infrastructure projects.
• August 2023: China restricted exports of gallium and germanium, two materials critical to semiconductor fabrication.
• October 2023: The U.S. tightened restrictions on advanced AI chips, including some designed by Nvidia, to prevent sensitive technologies from reaching China.
• October 2024: The U.S. Department of Commerce implemented additional export controls, restricting the sale of 24 types of semiconductor manufacturing equipment and three types of software tools to China. 
• October 2024: In response to U.S. actions, China announced export controls on a range of dual-use items, including advanced semiconductor materials and technologies. 
• May 2025: The U.S. Commerce Department announced that, effective April 16, 2025, companies must obtain export licenses to ship advanced AI chips—specifically Nvidia's H20 and AMD's MI308 models—to China.
• June 2025: The U.S. Department of Commerce announced that it was considering revoking authorizations granted to global chipmakers, including Samsung, SK Hynix, and TSMC, to receive U.S. goods and technology at their plants in China.
• September 2025: China's Cyberspace Administration instructed leading technology companies, including ByteDance and Alibaba, to stop purchasing Nvidia's latest AI chips, the RTX Pro 6000D, and to cancel existing orders.

The Uncertain Future of Taiwan

Taiwan remains the world’s most critical hub for advanced semiconductor manufacturing. However, its political status adds uncertainty to its role in the future of global chipmaking. The Chinese government views Taiwan as part of its territory and has not ruled out the use of force to achieve unification. According to the U.S. Congressional Research Service, China emphasizes peaceful resolution but still maintains a robust military pressure as part of its broader strategy.

This geopolitical tension creates significant risks for companies dependent on Taiwanese chip supply. A disruption to Taiwan’s semiconductor manufacturing capacity would have global consequences, underscoring the urgency of building more resilient supply chains.

Why the Future of Semiconductor Manufacturing is Increasingly Domestic

Semiconductors now function as both an economic foundation and a geopolitical flashpoint. COVID-19 demonstrated the costs of shortages, while U.S.-China competition has placed semiconductor manufacturing at the center of trade and national security policy.

In light of the last five years of shortages, export restrictions, and geopolitical tit-for-tats, it’s no wonder the United States (and much of Europe) has begun investing heavily in domestic chip manufacturing. While new and expanded fabrication sites in North America are nothing new, their rapid proliferation—combined with very public investment announcements from major companies and semiconductor manufacturers alike—reflect a strategic shift toward supply chain resilience and reduced reliance on East Asia.

Where Are Most Semiconductors Currently Produced?

Asia dominates global semiconductor production. Taiwan manufactures roughly 60% of the world’s chips and more than 90% of its advanced semiconductors, according to Boston Consulting Group and the Semiconductor Industry Association. South Korea is also a leader in memory chip production, while China has steadily expanded its domestic capabilities.

Summary

In all, semiconductor chips are in the hot seat, and the U.S.---along with manufacturers outside China—are right to be concerned about the long-term viability of relying heavily on chips made in Taiwan and China. With these future risks in mind, the U.S. has begun to invest heavily in domestic semiconductor manufacturing. 

Here’s a look at the semiconductor fab landscape across four major manufacturing regions, as of September 2025:

New Semiconductor Fabs by Region 

This graph shows new semiconductor fabs that have been publicly announced and are either in the planning stage or are already under construction.

As of September 2025, China has two semiconductor fabs in production, both expected to be completed by the end of the year. One, located in the port city of Guangzhou, is slated to manufacture 22 nm, 40 nm, and 55 nm nodes with a monthly capacity of 40,000 wafers. The other, in Wuxi near Shanghai, is designed to produce 40 nm, 55 nm, and 65 nm nodes, with a monthly capacity of 83,000 wafers.

In the United States, seventeen fabs are either planned or under construction. Many of these facilities are focused on advanced semiconductor manufacturing, with Samsung Foundry and TSMC planning production sites focused on manufacturing 4 nm and 5 nm nodes.

Across Asia—including Japan, Singapore, India, South Korea, and Taiwan—23 new fabs are in development, most scheduled to begin production by the end of 2025. Japan’s Rapidus Corporation has announced plans to manufacture 1 nm and 2 nm nodes, while TSMC is targeting 1.4 nm and 2 nm nodes. Other countries are concentrating on legacy semiconductor manufacturing, including India (65 nm), Singapore (40 nm and 130 nm), and Malaysia (28 nm and 40 nm).

Semiconductor Fabrication Expansions by Region

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Expansions to existing factories remain a focused but relatively small share of the global semiconductor manufacturing landscape. As of 2025, China is on track to complete four expansions to existing fabs, all centered on 28 nm nodes—a legacy technology that continues to play a critical role in products ranging from consumer electronics to automotive systems.

Japan will see expansions at two plants, both geared toward logic chips and image sensors. These fabs plan to manufacture nodes ranging from 3 nm to 28 nm, with one site expected to reach a monthly capacity of 50,000 wafers.

In the United States, seven fab expansions are planned, with a strong emphasis on advanced chipmaking. TSMC is preparing to produce 2 nm and 3 nm nodes at its Arizona sites, scheduled to come online in 2026 and 2028, respectively. Meanwhile, expansions by GlobalFoundries and Texas Instruments will target 28 nm and larger nodes—putting U.S. production in a position to become more competitive with China in the legacy chip market, and even contest its current dominance.

North America Semiconductor Fabs by Owner

TSMC certainly knows how to seize headlines, but Samsung Foundry reigns supreme when it comes to the total number of new semiconductor fabs. Approximately 50% of all planned semiconductor fabs (including new sites, those currently in production, and expansions) will be from Samsung Foundry. 

TSMC certainly knows how to seize headlines, but Samsung Foundry reigns supreme when it comes to the total number of new semiconductor fabs.

Semiconductor Fabrication Sites by State

Texas continues to play a pivotal role in semiconductor manufacturing, with state and federal incentives fueling new investments across the region. On September 18, 2025, the Texas Semiconductor Innovation Fund (TSIF)—a state program designed to strengthen local semiconductor capacity—awarded Samsung Austin Semiconductor, a subsidiary of Samsung, $250 million in grant support.

Samsung Foundry remains at the forefront of these investments, with 12 fabs planned for Taylor and Austin. Ten of these will be entirely new facilities, while two represent expansions of existing fabs.

Why Choose Arizona and Texas for Semiconductor Manufacturing?

Arizona offers a range of benefits for semiconductor manufacturing initiatives, including:

• 300 days of sunshine each year, offering ample opportunities for solar energy.
• Low seismic activity due to lack of fault lines in the area.
• A lack of other major natural disasters, such as hurricanes and floods.
• Naturally isolated by its geographical features.
• A desert landscape that offers an abundance of land to build on, with few natural obstacles—like mountains or trees—to contend with. 

Texas provides its own  unique array of advantages for chip firms. The state, already a leader in semiconductor technology (and home to the first semiconductor ever built), passed its own CHIPS Act in 2023, which allocates $698 million for new semiconductors and $660 million for the creation of advanced research and development centers at The University of Texas at Austin and Texas A&M University. Passed nearly a year after Biden’s CHIPS and Science Act, the law aims to:

• Leverage Texas’ investments in the semiconductor industry
• Encourage semiconductor-related companies to expand in the state
• Further develop the expertise and capacity at Texas higher education institutions.

The law also established the Texas Semiconductor Innovation Consortium (TSIC) and TSIF. 

What Types of Technology are Being Produced by These Fabs?

Many of the new fabs are prioritizing advanced semiconductor nodes, which are generally defined as chips below 7 nm.

Chips at these scales are central to a wide range of applications, from consumer electronics like laptops and smartphones to the high-performance processors used in data centers that power AI workloads and advanced computing.

They are also increasingly important in the automotive sector, particularly as the industry accelerates toward autonomous and highly connected vehicles.

What Are the Advantages of Advanced Semiconductor Chips?

Advanced semiconductor chips deliver significant advantages in speed, power efficiency, and performance. By packing more transistors onto smaller nodes, they enable faster processing while consuming less energy—an essential combination for high-performance computing, mobile devices, and AI-driven applications. These efficiencies also help extend battery life in consumer electronics, while supporting the demanding workloads of modern data centers.

The Ever-Evolving Semiconductor Manufacturing Landscape

The global semiconductor landscape is evolving rapidly, with new fabs and expansions to existing sites reshaping the balance between advanced and legacy chip production. While Asia continues to dominate overall output, investments in North America, particularly in the United States and Texas, are strengthening domestic semiconductor manufacturing capacity. Advanced nodes are driving innovation across electronics, data centers, and automotive technologies, while legacy chips remain critical for everyday products. Together, these developments highlight the strategic importance of diversifying production and building resilient supply chains to meet both current and future demand.