In a recent report by the International Data Corporation (IDC), Southeast Asia is projected to solidify its standing in the global semiconductor assembly and test market, reaching a 10 percent share by 2027. Meanwhile, Taiwan’s share in semiconductor assembly and test market is anticipated to decline to 47 percent in 2027 from 51 percent in 2022.
In response to global geopolitical dynamics and to ensure supply chain resilience and security, many semiconductor manufacturers have been adopting “China + 1” or “Taiwan + 1” production strategies, redefining the global layout of the foundry and assembly/test industry. This strategic overhaul has led to a regionalized approach within the semiconductor industry chain.
Helen Chiang, Asia Pacific semiconductor research lead and Taiwan country manager, emphasized the profound impact of geopolitical shifts on the semiconductor landscape, stating, “Geopolitical shifts are fundamentally changing the semiconductor game. While immediate impacts might be subtle, long-term strategies are focusing more on supply chain self-reliance, security, and control. The industry operation will move from global collaborations to multi-regional competitions.”
Based on production location categorization, China’s share of overall industrial areas is projected to increase to 29 percent by 2027, a 2 percent rise from 2023, while Taiwan’s market share is expected to decrease from 46 percent in 2023 to 43 percent in 2027. The United States is set to make gains, particularly in the advanced process sector, with its share for 7nm and below processes estimated to reach 11 percent by 2027.