However, many new investments have been made to overcome the chip crisis around the world. According to data from the chip manufacturers association SEMI, the construction of 84 major chip factories worldwide will begin in the period from 2021 to the end of 2023. The investment amount in these facilities will exceed USD 500 billion. The number of start-up construction of the new chip production facility will be 23 in 2021 and 33 in 2022, while this number will increase to 28 in 2023. Together with the US and the countries of the European Union (EU), China is rapidly making new investments to expand this market to dominate. The US has prepared programs to support the chip industry in excess of USD 50 billion and the EU in excess of EUR 40 billion.
Looking at the geographic spread, 20 new frying plants have been built in China, 18 in the US, 17 in Europe and its immediate vicinity, 14 in Taiwan, 6 in Japan, 6 in Southeast Asian countries and 3 in South Asia during the same period. -Asia. Korea. It is claimed that the cost of an entry-level chip factory is $15 billion. Chip factories can be considered obsolete in about 5 years due to technological progress. Chip production is a laborious process and requires serious investment. Chip factories are investments with very high costs. After the establishment of these facilities, production continues without interruption.
TSMC PRODUCES 90 PERCENT ADVANCED CHIPS
90 percent of advanced chips are made in Taiwan. Taiwan-based TSMC is the world’s largest chip manufacturer. The company has a market capitalization of $400 billion and annual revenues of $70 billion.
US-based company Intel ranks second in chip production. With a market cap of $100 billion, the company’s revenue is $69 billion.
Another US chipmaker, Qualcomm, ranks third in this area. With a market value of $128.5 billion, Qualcomm’s revenue was $42.1 billion.
In fourth place is the American company Broadcom. The market value of this company is 234.5 billion euros and the turnover is 33.2 billion dollars.
US-based company Micron also ranks 5th. This company has a market cap of $55.7 billion and revenue of $30.7 billion.
Nvidia is another US-based chip manufacturer. The sixth-ranked company has a market value of $405.9 billion and annual income of $28.5 billion.
US-based Applied Materials also ranks 7th with a market cap of $89.4 billion and revenue of $25.8 billion.
Taiwanese company ASE Technology, which ranks 8th in chip production, has annual revenues of $23 billion.
The American company AMD also has a market value of USD 109 billion. The company ranks 9th with revenue of $22.8 billion.
The Netherlands-based company ASML ranks 10th in the chip industry. The company has a market cap of $234 billion, with sales of $21.3 billion.
STILL 75 PERCENT OF EAST ASIA’S PRODUCTION
Today, most chip production takes place in Asian countries. Currently, 75 percent of chip production is exported to East Asia. Taiwan, South Korea, Japan, China and the US are the leading countries in chip production. Developed economies, on the other hand, have experienced during the pandemic that over-reliance on Asia on the chip can be dangerous. Nearly half of the world’s chip production and nearly all advanced chips are produced in Taiwan, which is part of China under the United Nations but maintains close political relations with the West.