In 2023, China stood as the world’s largest electronics exporter, holding a 33% share of total global exports and achieving a total value of $1,368 billion. Taiwan secured the second position, with a 12% share of global exports and a total value of $507 billion.
In contrast, the United States landed in a distant seventh place, contributing only a 4% share to total exports and reaching a total value of $166 billion.
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TOP 10 ELECTRONICS MANUFACTURERS BY COUNTRY IN 2022-2023 (IN US$ BILLION)
- China $1,368B (33%)
- Taiwan $507B (12%)
- South Korea $321B (8%)
- Vietnam $213B (5%)
- Malaysia $190B (5%)
- Japan $170B (4%)
- United States $166B (4%)
- Germany $151B (4%)
- Mexico $150B (4%)
- Thailand $114B (3%)
GEOPOLITICAL SHIFT RESHAPE SEMICONDUCTOR LANDSCAPE
According to IDC, there have been significant changes in the global semiconductor landscape. The implementation of chip acts and semiconductor policies by various countries requires semiconductor manufacturers to develop ‘China + 1’ or ‘Taiwan + 1’ production plans. This policy changes have reshaped the global layout of the foundry and assembly/test industries, driving regional development within the semiconductor industry chain.
Major industry players like TSMC, Samsung, and Intel are making strategic decisions with new technology in the United States. These steps will eventually become more influential in the foundry industry over time.
Meanwhile, China is also progressing quickly in its technology, due to its local demand and national policies.
China’s industrial areas are expected to grow to 29% by 2027, up from 27% in 2023, while Taiwan’s share will decrease from 46% in 2023 to 43% in 2027. The United States is projected to make gains in advanced processes, with its share for 7nm and below expected to reach 11% by 2027.
Due to geopolitics, technological advancements, and talent availability, major integrated device manufacturers (IDM) in the United States and Europe are increasing their investments in the Southeast Asia market. Additionally, OSAT (outsourced semiconductor assembly and test) companies are shifting their focus from China to Southeast Asia.
Therefore, Southeast Asia is projected to have an important role in the semiconductor assembly and test market, especially Malaysia and Vietnam. Southeast Asia’s share of the global semiconductor assembly and testing market will reach 10% in 2027, while Taiwan’s share will decline from 51% in 2022 to 47% in 2027.
THE WORLD’S ELECTRONICS TRADE WITH ITS TOP 5 TRADING PARTNERS
The below graph shows the composition of imports and exports in electronics in 2022-2023 and the share of the top 5 trading partners of the world. (source: McKinsey Global Institute)
Most imported electronics are component chips, with Taiwan being the largest country from which the world sources them. It is no surprise, given that Taiwan is home to TSMC, the world’s largest semiconductor foundry. Check out more about the Top 10 Biggest Semiconductor Companies here.
