S-01 / DESIGNDesign software & chips
Chips are designed in EDA software from three companies, two American and one German, often on licensed processor IP. Most leading designers are fabless and own no factory.
Chips are designed in software from three companies, and most designers own no factory.
CONCENTRATED INUnited States · UK · Taiwan
S-02 / MATERIALSWafers, chemicals & minerals
Silicon and compound wafers, photoresists, ultra-pure gases and critical minerals. Japan leads in wafers and resists; China refines most rare earths and gallium.
Wafers, chemicals, gases and critical minerals, led by Japan and China.
CONCENTRATED INJapan · China · United States
S-03 / EQUIPMENTFab tools
Lithography, deposition, etch and inspection machines. ASML is the only maker of EUV systems; most other tool types come from the US and Japan.
Lithography, etch and inspection tools, mostly from the US, the Netherlands and Japan.
CONCENTRATED INUnited States · Netherlands · Japan
S-04 / FABRICATIONWafer fabrication
Wafers pass through hundreds of steps in cleanrooms. Most advanced logic capacity sits in Taiwan, with Korea second.
Hundreds of cleanroom steps turn wafers into chips, mostly in Taiwan and Korea.
CONCENTRATED INTaiwan · Korea · China
S-05 / BACK ENDAssembly, test & packaging
Finished wafers are cut into dies, packaged and tested, often in another country. Advanced packaging now shapes the performance of AI chips.
Wafers are cut into dies, packaged and tested, often in another country.
CONCENTRATED INTaiwan · China · Southeast Asia
S-06 / PEOPLETalent
Yield depends on engineers who have ramped fabs before. Most of them work in Taiwan, and new fabs abroad have had to borrow them.
Yield depends on experienced engineers, and most of them work in Taiwan.
CONCENTRATED INTaiwan · Korea · Japan
S-07 / UTILITIESEnergy & water
A large fab draws as much power as a small city and uses millions of litres of ultra-pure water a day. Cheap, steady power is a precondition.
A large fab uses as much power as a small city and millions of litres of water a day.
ADVANTAGERegions with low-cost, reliable power
S-08 / DEMANDEnd markets
Chips go into cars, phones, data centres, power grids and defence systems. Power chips grow with electrification and AI.
Cars, phones, data centres and power grids, with demand rising alongside electrification and AI.
CONCENTRATED INGlobal