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Global Semiconductor Landscape 2023: Insights from the North American Semiconductor Ecosystem Map

The global semiconductor industry stands as a testament to human innovation and technological prowess, with regions across the world contributing to its meteoric growth.  

The year 2022 witnessed a remarkable milestone in the semiconductor industry, with global sales reaching an unprecedented $583.2 billion USD. This surge reflects the industry’s unwavering resilience and its ability to adapt and thrive amidst evolving market conditions. The Asia Pacific region, spearheaded by China, played a pivotal role in this growth, while the Americas experienced a noteworthy rebound, contributing to the sector’s impressive performance. 

Semiconductor Sales Worldwide, 2015 – 2022, by Region ($B USD)

In the context of this robust industry growth, the global semiconductor landscape is punctuated by giants that lead the charge in revenue generation. In 2022, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) emerged as the frontrunner, boasting an impressive $71.66 billion in revenue. Close behind, Intel demonstrated its prowess with $69.54 billion, while Qualcomm Inc. secured the third spot with $42.10 billion. Notably, Broadcom Inc. and Micron Technology Inc. solidified their positions in the top five, underlining their influence in shaping technological advancements. 

Top 10 Biggest Semiconductor Companies by Revenue (2022, $USD)

Semiconductor firms, often recognized as pioneers in technological advancement, consistently prove to be among the most innovative companies in the world. Their commitment to pushing the boundaries of what’s possible has not only driven the remarkable growth in sales but also played a fundamental role in shaping our increasingly connected and technologically advanced global landscape. 

The heart of semiconductor innovation beats within research and development (R&D) centers across the globe. The United States led the pack in R&D concentration, contributing 18.6% of sales in 2020. Europe closely followed, accounting for 17.1%, while Japan and Canada held significant shares of 12.9% and 9.4%, respectively. These regions exemplify the collaborative global effort to push the boundaries of technological progress and drive innovation forward. 

Semiconductor Research and Development as Share of Sales, 2020

Furthermore, when compared to all other industries, Canadian semiconductor sector consistently allocates a significantly higher proportion of its resources to R&D, a trend that continues to grow over time. In 2021 (latest), Canadian industry as a whole allocated just 2.1% of revenues towards R&D, while semiconductor firms allocated 12.7% 

Canada’s R&D Expenditures as a % of Revenues, 2019-2021

Strategic Foreign Direct Investment (FDI) in Semiconductor Industry 

Increasing demand, new international investment realities, and geopolitical considerations has led to the sharp increase in semiconductor-related Foreign Direct Investment (FDI).  

With the investment restrictions laid out in the CHIPS Act, firms have been flocking to refocus investment efforts away from unfavourable locations. Between 2003 and 2020, China emerged as the dominant player in semiconductor foreign direct investment, boasting an impressive $96.7 billion in project value. This was twice the amount seen in the United States during the same period. 

However, a significant shift has occurred in recent years. Starting in 2021, the United States has witnessed a remarkable resurgence, attracting $52 billion in semiconductor FDI, while China’s inflow has dwindled to a mere $6.5 billion. Additionally, countries like India, Ireland, Japan, Malaysia, Singapore, and Germany have also risen to prominence as attractive destinations for recent semiconductor FDI projects. These locations have been characterized by substantial capital investments, reflecting the evolving landscape of global semiconductor investment. 

At the firm level, Intel stands at the forefront for FDI activities, investing an impressive $65.54 billion since 2013, closely followed by TSMC with $53.72 billion. Samsung Group secured the third spot with $26.77 billion in FDI. A host of other influential companies, including Micron Technology, Foxconn, UMC, and Infineon Technologies, have also significantly contributed to this influx of investment. These substantial investments underscore the global interest in the semiconductor industry and the concerted efforts of these players to drive innovation and solidify their positions. 

Top 20 Companies by Foreign Direct Investment into Semiconductors, 2013-2022 ($B)

Nations are racing to secure a slice of the lucrative semiconductor investment as the industry’s importance grows. This highlights the intense global competition to attract capital and innovation in this high-tech sector, with countries investing in infrastructure and incentives to position themselves as prime destinations for semiconductor FDI. 

Global 2023 Semiconductor Landscape 

As the world navigates the complex realm of technology, the semiconductor industry stands as a driving force. The 2023 North American Semiconductor Ecosystem map by Global Advantage Consulting offers a panoramic view of this dynamic sector, emphasizing global sales growth, revenue leaders, research concentrations, and strategic FDI. The insights gleaned from this map underscore the industry’s significance in propelling economic growth, technological innovation, and global collaboration. 

Contact us now to discover the power of North American Semiconductor Ecosystem and its potential impact on your organization’s growth and success. Check out the various subscription options Here.   

For more insights into global vibrant semiconductor ecosystem and its role in the North American market, stay connected with Global Advantage Consulting. Our commitment to unravelling innovation, exploring new frontiers, and providing informed perspectives ensures you stay ahead in the dynamic world of technology.