China could be the world’s top semiconductor foundry hub by 2030 — despite US curbs, nation to hold 30% of global installed capacity, surpassing Taiwan.

Market research and tech consulting firm Yole Group predicts that China will have 30% of the world’s global foundry production capacity, making it the largest hub of semiconductor production. At the moment, Taiwan holds the highest output capacity at 23%, followed closely by China at 21%, South Korea at 19%, Japan at 13%, the U.S. at 10%, and Europe at 8%. China is expected to take the lead because of the massive investments in domestic semiconductor manufacturing, driven by Beijing’s goal of reaching self-sufficiency for its chip production.

In 2024, the East Asian country’s semiconductor production hit 8.85 million wafers per month, an increase of 15% from the previous year, and is projected to hit 10.1 million in 2025. China achieved this with the construction of 18 new fabs — for example, Huahong Semiconductor, and pure-play foundry based in Shanghai, just opened a 12-inch fab in Wuxi, with production beginning in the first quarter of this year.

The U.S. is the largest consumer of wafers, accounting for about 57% of global demand. However, it holds just around 10% of global production capacity, meaning it must source the rest of its supply from other major producers like Taiwan, South Korea, and China. On the other hand, Japan’s and Europe’s production largely satisfies internal demand. There are other producers out there, too, like Singapore and Malaysia, which make up around 6% of global foundry capacity. These companies are largely foreign-owned, though, and exist to satisfy the demand in areas like the U.S. and China.

Source: Tomshardware