Global Industrial Layout & Supply Chain Dynamics
Global Market Dynamics
1. Semiconductor Market Heading Toward Trillion-Dollar Scale
The global semiconductor industry is projected to surpass a market size of **US$1 trillion** for the first time in 2026. Data from multiple authoritative research institutions back this forecast. Even under an extremely conservative scenario, the market scale will reach US$901 billion. The industry maintains a strong growth momentum, and some optimistic forecasts suggest the market value may even double within the year to hit US$1.6 trillion.
2. Active Performance in Capital Markets
Global semiconductor sectors have delivered outstanding performance in capital markets. The Philadelphia Semiconductor Index has posted a remarkable gain year-to-date, while Asian markets also shine brightly. South Korea’s Composite Index and China’s STAR Market 50 Index have both recorded substantial increases, reflecting investors’ strong attention and confidence in the AI and semiconductor industries.
Industrial Expansion & Strategic Layout
1. TSMC’s Japan Drives Regional Semiconductor Revitalization
Construction has started on TSMC’s second wafer fab in Kumamoto, Japan, regarded by Japan as a key move to revitalize its semiconductor industry. The project is jointly operated by TSMC and Japanese enterprises including Sony, Denso and Toyota. It has directly created thousands of jobs, attracted a large number of supporting enterprises to settle in, and boosted all-round local development covering infrastructure and educational services. Kumamoto is actively lobbying TSMC to build its third fab in the region.
2. Continuous Recovery of China’s Semiconductor Industry
China’s semiconductor industry showed a strong recovery momentum in 2024. The export volume of integrated circuits exceeded RMB 1 trillion again. Listed semiconductor companies on the A-share market achieved notable growth in overall revenue and profits. SMIC’s market share in the global foundry industry rose to the third place for the first time. Meanwhile, the establishment of the Phase III National Integrated Circuit Industry Investment Fund has provided unprecedented financial support for the industry.
International Cooperation & Supply Chain Restructuring
Against the backdrop of global geopolitical and industrial trends, international semiconductor enterprises are actively adjusting their China strategies. Leading European chipmakers such as Infineon, NXP and STMicroelectronics have recently announced deeper cooperation with local Chinese wafer fabs or sought to expand their supply chains in China. Shifting part of manufacturing processes to China-based production to get closer to the market and enhance supply chain resilience has become a core strategy for global industry giants.