Where Are the World’s Most Important Semiconductors Being Manufactured?

With each passing year, the importance of semiconductors seems to grow. While they’ve long been essential to key 21st century technologies like laptops, smartphones, and increasingly connected cars, the past decade has seen their stature expand in the direction of defense and military technologies, too. In addition, they’ve recently emerged as essential hardware for the advancement of artificial intelligence (AI). Industry-leading AI companies like OpenAI and Anthropic use some of the world’s most sophisticated chips to run their models—including Nvidia’s Blackwell B200 GPU. The chips and the software and technology that power them now serve as a critical form of geopolitical leverage between nations competing in the all-important AI race.

Because of semiconductors’ broad array of applications and criticality to the safety and prosperity of myriad nations, the status of the global semiconductor manufacturing landscape is vital to track. From a financial, geopolitical, and trade perspective, where chips are made matters. With this in mind, Z2Data carried out a data analysis to get a clearer picture of the world’s semiconductor manufacturing ecosystem, including where many of the most in-demand, irreplaceable chips are being designed, fabricated, and packaged. 

Z2Data Analysis of the Semiconductor Manufacturing Landscape: Insights

Our analysis yielded several noteworthy insights. These include:

• A statistical picture of where China is making significant strides in chip fabrication
• Some of the semiconductors that are most responsible for Taiwan’s preeminence in the industry
• Evidence supporting the notion that, while the U.S. may be flagging behind other countries in semiconductor production, it continues to dominate in the area of chip design

This data may confirm some assumptions, while challenging others. In any case, it provides original equipment manufacturers and other businesses that source chips with a significantly more nuanced picture of the semiconductor manufacturing landscape than is generally available in the media. We hope supply chain leaders and their businesses examine this report with interest, keeping an eye toward utilizing the data to inform their own future sourcing decisions. 

Implications of This Analysis For Original Equipment Manufacturers (OEMs)

This data contained in this report and the accompanying takeaways are intended to help professionals gain a deeper understanding of the sprawling, lucrative chip ecosystem. This is not meant to serve as static information, either, and our hope is that the unique data and intelligence in this report informs supply chain strategies, deepening leaders’ expertise by illuminating some of the most salient trends currently coursing through this sector. 

Expand Understanding of Semiconductor Manufacturing Ecosystem

Even for sourcing and procurement professionals, the semiconductor manufacturing landscape can be a complex, dynamic space. The information and data summarized in this report can provide readers with a rough map of the landscape’s geography. Someone interested in understanding where microcontrollers (MCUs) are primarily being fabricated, for example, will see that the U.S. and Taiwan are the clear leaders in manufacturing these chips, with Japan, France, and Singapore rounding out the top five. Professionals might want to learn more about the supply chain for discrete semiconductors, too, and can utilize the takeaways in this report to see the nations most responsible for designing and packaging these chips. This level of detail allows readers to deepen their proficiency beyond the widely disseminated narratives—‘the entire world depends on Taiwan’s foundries,’ ‘the U.S. doesn’t produce semiconductors anymore’—and cultivate a more granular understanding of this multifaceted landscape.

Along these same lines, the data in this article underscores just how interdependent countries and their semiconductor firms are with one another. To take one example, while we learned from the data we pulled that the U.S. designs far and away the most interface ICs of any country in the world (based on the location of company headquarters), Taiwan and Germany serve as the country of diffusion (COD) for many of these chips. The chips are often assembled, meanwhile, in Southeast Asian nations like Malaysia, Thailand, and the Philippines. Poring over the findings in this article can give readers a snapshot into this interdependence, as well as a better grasp of what countries are fulfilling what roles. 

The data in this article can help businesses better understand various corners of the global semiconductor manufacturing ecosystem, including:

• Gaining a better sense of the geography of the global semiconductor manufacturing ecosystem. 
• Identifying the interdependence that goes into manufacturing many chips, where they were designed in one place, fabricated in another, and packaged in a third. 
• Deepening expertise with respect to where specific commodity types are manufactured. For example, China manufactures a disproportionate number of discretes, while Taiwan dominates FPGAs and DRAM memory.

Learn About the Manufacturing Capacity of China+1 Countries 

While 2025 has been a difficult year for all U.S. businesses importing goods from outside the country, it has been particularly challenging for companies that rely heavily on China. The Trump administration has engaged in an intermittent trade war with the Chinese Communist Party (CCP) for much of the year, and American importers are currently contending with tariff rates north of 50% for many Chinese goods. Organizations that are starting to find the existing tariff rates on China increasingly untenable may be considering derisking away from the U.S. rival, and establishing sourcing in other nations with less volatile relationships with America. 

Some of the data in this article can provide businesses with helpful context and orientation for China+1 countries with a footprint in semiconductor manufacturing. Southeast Asian nations like Malaysia, Thailand, and the Philippines, for example, are all expanding their presence in the back-end manufacturing processes of assembly, testing, and packaging. While U.S. firms may not always have an immediate path to shifting their chip fabrication operations out of China, they could have more flexibility with the country of assembly (COA). 

Develop Corresponding Risk Management Strategies

Finally, this data analysis provides organizations with the foundation and rationale for developing and implementing new supply chain risk management (SCRM) strategies. Due to high tariffs, tit-for-tat trade measures, and ongoing geopolitical tensions between the U.S. and China, semiconductors fabricated in the latter country may be considered higher risk. In these cases, businesses should consider building risk mitigation strategies specifically targeting these parts. Other potentially vulnerable commodity categories include field programmable gate arrays (FPGAs), a type of customizable chip highly dependent on just six suppliers who are all based in Taiwan. 

Targeted risk management strategies include:

• Securing alternative sourcing, whether it be through alternate parts, suppliers, or even manufacturing countries.
• Strengthening relationships with key suppliers manufacturing chips with few alternative producers.
• Diversifying supply chains to reduce dependence on countries with fragile geopolitical relations with the U.S. 
• Seeking tariff relief by analyzing country of assembly (COA), country of diffusion (COD), and determining whether any strategic “tariff engineering” is achievable. 

Z2Data Semiconductor Manufacturing Analysis Methodology

To obtain the data in this article, we started by identifying 10 of the most important semiconductor commodity types, based on criteria that included global sales, applications, and manufacturing complexity. These 10 types include:

• Analog/Mixed Signal ICs
• Discrete Semiconductors (Diodes, transistors, MOSFETs)
• CPUs (central processing units)
• Field-Programmable Gate Arrays (FPGAs)
• Interface ICs
• DRAM Memory
• Flash/EEPROM Memory
• Power Management ICs
• RF/Wireless ICs
• Microcontrollers (MCUs)

Following this initial scope, we pulled data on all the active manufacturing part numbers (MPNs) for these 10 commodity types in our database. Then, we categorized this data based on the country where the chip was fabricated (country of diffusion, or COD); the country where the semiconductor was assembled (country of assembly, or COA); and the country where the semiconductor was designed. For the latter category, we used the company headquarters as a proxy for where the chip was designed. 

Finally, we narrowed the data down to the top five countries in each category. (For example, for the COD for FPGAs, we examined the number of MPNs manufactured in Taiwan, Singapore, the U.S., Japan, and Ireland, the five nations that fabricate the most FPGAs.) The final data report included 30 different categories and several million individual semiconductor parts. 

Major Takeaway One: China Dominates Discretes

In recent years, there’s been a great deal of discussion surrounding China’s ascendance in semiconductor manufacturing. While the country has made profound strides ramping up their chip manufacturing capacity and embedding themselves in various global supply chains, the question remains whether China will ultimately be able to catch up to Taiwan, Japan, and the U.S., who enjoy substantial head starts and have served as chief players in the industry for decades. 

The data in this report sheds light on one swath of the chip manufacturing ecosystem where China has quickly caught up with its rivals: discretes. Discrete semiconductors are individual devices that perform single, elementary electronic functions, and include diodes, transistors, MOSFETs, and rectifiers. Based on our data, China decisively ranks at the top in both the fabrication and assembly of these components. (As with many semiconductor types, the U.S. is still where most of these parts are designed, with China ranking third.)

In terms of country of diffusion (COD), China is the clear leader, with over 270,000 parts by manufacturing part number (MPN).

Top Country of Diffusion (COD) for Discretes 

1. China
2. Taiwan
3. United States
4. Japan
5. India

When it comes to assembly, testing, and packaging, China also emerged as the clear global leader. In fact, China enjoys an even stronger lead in assembly, testing, and packaging (ATP) for discretes than it does for diffusion. The nation is the COA for over 380,000 active discretes, more than three times higher than the next-largest COA for the commodity type (Japan).

Top Country of Assembly (COA) for Discretes 

1. China
2. Taiwan
3. Philippines
4. United States
5. Thailand

Major Takeaway Two: FPGAs and DRAM Memory Are Vital to Taiwan

We’ve all heard variations on the statistics and their accompanying narratives before. Taiwan accounts for more than 60% of total global semiconductor production. Further, the country manufactures 90% of the world’s most advanced chips. Taiwan and its iconic foundry, the Taiwan Semiconductor Manufacturing Company (TSMC), are indispensable to the worldwide semiconductor supply chain, and without the island nation of 23 million, many of our most ubiquitous devices might not exist at all. 

While there’s truth to these oft-referenced figures and the assertions we draw from them, a closer look at the data points to some noteworthy nuances in Taiwan’s semiconductor manufacturing primacy. While the country ranks in the top five in country of diffusion (COD) for all 10 commodity types we analyzed, a significant amount of the country’s manufacturing dominance comes from just two devices: field-programmable gate arrays (FPGAs) and DRAM memory. 

Taiwan fabricates more FPGAs than the next four top countries combined. Equally surprising, over 13,000 MPNs are manufactured by just six Taiwanese suppliers. 

Top Country of Diffusion (COD) for FPGAs

1. Taiwan
2. Singapore
3. United States
4. Japan
5. Ireland

Top Country of Assembly (COA) for FPGAs

While Taiwan is still head and shoulders above rival nations when it comes to assembly, testing, and packaging, its lead is not nearly as pronounced as with COD. While Taiwan is the COA for nearly 13,000 FPGA MPNs, two countries—South Korea and Malaysia—both serve as the COA for over 8,000 FGPAs. 

1. Taiwan
2. South Korea
3. Malaysia
4. Philippines
5. United States

The story is similar for DRAM memory. Taiwan is far and away the leader in fabricating these chips, with more MPNs, more part families, and more unique suppliers than the next four nations combined. 

Top Country of Diffusion (COD) for DRAM Memory

1. Taiwan
2. China
3. Japan
4. United States
5. Singapore

Top Country of Assembly (COA) for DRAM Memory

Taiwan is also the top location for assembly, testing, and packaging (ATP) DRAM memory, with a substantial lead over all other nations carrying out these services for DRAM chips (though China, notably, is a clear second for COD and COA in this niche).

1. Taiwan
2. China
3. Vietnam
4. South Korea
5. Singapore

Major Takeaway Three: Despite Media Narratives, U.S. Remains Major Player With Design Primacy

Contrary to much of the political rhetoric over the past few years centered on the U.S.’s diminishing role in semiconductor manufacturing , the nation remains a crucial player in the global chip ecosystem. There’s no question that the nation produces less semiconductors than it used to. U.S.-based fabs today manufacture around 12% of the world’s chips, down from 37% in 1990. But America still ranks among the top three nations in producing key commodity types like mixed-signal ICs, CPUs, and flash memory. 

Where the U.S. really distinguishes itself today, however, is in the design phase of the manufacturing process. According to the Center for Strategic and International Studies (CSIS), the U.S. accounts for 46% of all chip design sales worldwide, as well as 72% of chip design software and licensing sales. 

Our data analysis supports this premise. More MPNs in the 10 commodity types we looked at were designed in the U.S. than any other country, and by a significant margin. The U.S. was far ahead of the competition in categories like CPUs, interface ICs, and flash and EEPROM memory. (To reiterate, we used the headquarters of the semiconductor firm as a stand-in for where chips were designed.)

Finally, while we’ve only included figures on the three above-mentioned commodity types, the U.S. is the leader in design for each of the 10 semiconductors we looked at. What we’ve provided below is intended to serve as a cross-section of that market supremacy. 

Top Headquarters for CPUs

The U.S. designs more CPUs—over 7,000 active MPNs—than the next four countries combined. 

1. United States
2. Japan
3. Netherlands
4. United Kingdom
5. Singapore

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Top Headquarters for Interface ICs

America’s design dominance is even more pronounced with interface ICs. According to our data analysis, U.S. companies design nearly 28,000 interface ICs, the majority of the total interface ICs in the world. 

1. United States
2. Japan
3. China
4. Germany
5. Ireland

Top Headquarters for Flash/EEPROM Memory

Finally, the U.S. is also the design leader for flash and EEPROM memory, with nearly 20,000 of these semiconductor MPNs made by firms headquartered in the U.S. These chips are essential to microcontrollers (MCUs), laptops, and automotive systems, among other applications. 

1. United States
2. Taiwan
3. China
4. Switzerland
5. Japan

See Into Your Semiconductor Supply Chain With Z2Data’s Powerful Visibility

Even before the Trump administration’s tariffs and the various trade conflicts they’ve set off, U.S. businesses were navigating significant obstacles in their semiconductor supply chains. The Biden administration had imposed its own high tariffs on Chinese chips, and American OEMs were scrambling to manage increases in these levies that went into effect on January 1 of this year. 

Given their geopolitical importance and criticality to everything from defense technologies to consumer electronics, semiconductors will likely continue to be weaponized by rival nations—regardless of the specific presidential administrations and political parties in power. Because of this, OEMs and other businesses can gain a powerful resource and competitive advantage from the visibility and insights provided by supply chain risk management tool Z2Data. 

Z2Data provides extensive data and intelligence on the global electronic supply chain, including but not limited to:

• Part-to-site mapping
• Parametric search
• Clean, normalized data
• Fabrication and ATP locations
• Comprehensive part profiles for over 1 billion components
• Detailed cross-references
• High-accuracy lifecycle forecasting 
• BOM risk assessment

For businesses that rely on DRAM memory, FPGAs, discretes, and other semiconductor commodities, Z2Data has the databases and expertise to serve as the foundation for your risk management strategy. To learn more about Z2Data and how its electronic supply chain solution can help your company maintain sourcing stability and safeguard manufacturing continuity, schedule a free demo with one of our product experts.