Semiconductor production outside China and Korea increased in 2022

Semiconductor industry billings in areas such as Taiwan, North America, Japan and Europe are increasing, while in China, the leader in this area, they have decreased by 5 percent in the past year. South Korea is also experiencing a contraction.

Semi, the trade association for chip manufacturers, reports that a total of $ 107.6 billion in invoices entered the books in 2022. That is 5 percent more than the $ 102.6 billion in 2021 and a new record. The organization speaks of billings instead of revenue. Billings are related to billing to a customer and revenue is related to actual production for that customer.

Of that $107.6 billion, China is responsible for $29.62 billion. That is a contraction of 5 percent compared to a year earlier. South Korea contracted by 14 percent to end with $24.94 billion.

On the other hand, production in Europe grew enormously. Where the continent accounted for USD 3.25 billion in 2021, that is USD 6.28 billion a year later, a growth of 93 percent. North America went from $7.61 billion to $10.48 billion, an increase of 38 percent. Japan grew by 7 percent and the big number two, Taiwan, grew by 8 percent.

According to Ajit Manocha, Chairman of Semi, the growth outside of China demonstrates “in several areas there is a determination to avoid supply chain problems such as those seen during the pandemic in the future.” Apple is an example of this: its suppliers are reportedly increasingly producing in Vietnam and India instead of China. Semi does not give a specific explanation for the decrease in South Korea.

Region Billing 2022 ($ billions) Billing 2021 ($ billions) Difference