China to Overtake Taiwan as World’s Largest Foundry Producer by 2030

 

China Expected to Become World’s Largest Semiconductor Foundry Nation by 2030

China is projected to account for over 30% of global semiconductor foundry capacity by 2030, overtaking Taiwan to become the world’s largest chip foundry producer, according to a recent report by market research firm Yole Group.

The report highlights that China, which currently holds 21% of the global foundry market share, is closing in on Taiwan’s 23% share. By 2030, China is expected to surpass its rivals and lead the global foundry industry.

Current Global Foundry Market Share

As of the first half of 2025, global foundry market share is distributed as follows:

• Taiwan – 23%

• China – 21%

• Korea – 19%

• Japan – 13%

• United States – 10%

• Europe – 8%

China’s Rapid Capacity Expansion

China produced 8.85 million wafers per month in 2024, a 15% year-on-year increase, and is expected to reach 10.1 million wafers per month by 2025. The country is currently building 18 new semiconductor fabs, including Huahong Semiconductor’s 12-inch fab in Wuxi.

Global Dependence on Asian Foundries

Despite accounting for 57% of global wafer demand, the U.S. produces only 10% of global foundry output, relying heavily on foundries located in Taiwan, South Korea, Japan, and China.

Taiwan, while controlling 23% of global foundry capacity, accounts for just 4% of global wafer demand, with TSMC, UMC, and VIS supplying most of their products to the U.S. fabless ecosystem.

South Korea, home to Samsung and SK hynix, similarly produces far more than its domestic demand (19%), exporting the majority of its chips to U.S. companies.

In contrast, Europe and Japan are largely self-sufficient, while Singapore and Malaysia collectively contribute about 6% of global capacity, much of which flows to China and the U.S.

Geopolitical Risks Persist

Yole Group warned that the global semiconductor supply chain remains highly vulnerable to geopolitical tensions. While the U.S. has spearheaded a “chip war” to reduce dependency on China, analysts expect Washington’s reliance on Chinese semiconductor capacity to remain significant for years to come.