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Taiwan is at the centre of the global semiconductor industry. In 2021, Taiwan alone accounted for nearly 64% of the semiconductor foundry market and this year its share is expected to reach 66%.

TSMC alone holds more than 50% foundry market share, as it possesses the most advanced process technology at this stage. 

According to TrendForce, Currently, 8-inch and 12-inch foundries are dominated by 24 fabs in Taiwan, followed by China, South Korea, and the United States. In 2022, Taiwan will account for approximately 48% of the global 12-inch equivalent wafer foundry production capacity. Only looking at 12-inch wafer production capacity with more than 50% market share, the market share of advanced processes below 16nm (inclusive) will be as high as 61%.

The top foundries are already considering another price hike this year. In the past year, the prices of semiconductors have increased by at least 10%. The main reason for the current price hike would be supply-chain constraints and rising input prices.

Increasing semiconductor prices will affect the global economy, as almost all tech and manufacturing industries depend upon a steady supply of electronics.

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