Explaining Taiwan’s lead in advanced semiconductor manufacturing
Ever wanted to pick the brains of someone deep inside the semiconductor industry? Semiconductor industry veteran Marco Mezger sat down in TaiwanPlus’ Now You Know series to answer viewer questions – explaining, quite literally, why things work the way they do.
One of the recurring questions addressed in the interview is why Taiwan continues to dominate advanced semiconductor manufacturing, and whether China is realistically in a position to overtake it. According to Mezger, the short answer is no — at least not in the foreseeable future.
Taiwan today accounts for a majority of global semiconductor manufacturing and an overwhelming share of the most advanced logic chips. This position, Mezger explains, is not the result of a single technological breakthrough, but rather decades of sustained investment in manufacturing processes, equipment, and engineering know-how. Advanced semiconductor fabrication is less about isolated innovation and more about mastering thousands of tightly controlled process steps at scale.
China, meanwhile, faces structural hurdles that extend beyond capital expenditure. While significant resources have been directed toward building domestic semiconductor capacity, Mezger points out that advanced chip manufacturing depends on an ecosystem that includes specialised materials, highly advanced production equipment, and experienced personnel. Recreating this ecosystem is a long-term process that cannot be accelerated easily through policy measures alone.
Another factor highlighted is manufacturing focus. Taiwan’s semiconductor industry has been built around foundry operations, refining contract manufacturing for global customers over several decades. This has allowed Taiwanese fabs to concentrate almost exclusively on yield, reliability, and process optimisation. Competing regions, including China, often attempt to develop design, manufacturing, and domestic supply chains simultaneously – a far more complex undertaking.
Mezger also addresses the broader geopolitical push to diversify semiconductor production, particularly through new fabs announced in the United States and Europe. While these investments may improve regional resilience, he notes that they do not immediately translate into leadership at the most advanced technology nodes. Experience, rather than factory count alone, remains a decisive factor. Taken together, these dynamics help explain why Taiwan’s position in advanced semiconductors remains difficult to challenge.
The full interview with Marco Mezger is available as part of TaiwanPlus’ Now You Know series on YouTube, where he expands further on viewer questions related to global chip manufacturing and industry dynamics.
