Why is Taiwan a leader in semiconductor production?

Have you ever wanted to ask someone in the semiconductor industry for their opinion? Marco Mezger, an industry veteran, answered viewer questions on the TaiwanPlus show "Now You Know," explaining why things work the way they do. A recurring question addressed in the interview is why Taiwan still dominates advanced semiconductor manufacturing and whether China has a real chance of overtaking it. According to Mezger, the short answer is no—at least not in the foreseeable future. Taiwan currently accounts for the majority of global semiconductor production and holds a dominant share in manufacturing the most advanced logic chips. Mezger explains that this position is not the result of a single technological breakthrough but rather decades of continuous investment in manufacturing processes, equipment, and engineering know-how. Advanced semiconductor manufacturing relies not so much on single innovations, but on mastering thousands of tightly controlled process steps at scale. Meanwhile, China faces structural obstacles that go beyond capital investment. Although significant funds have been allocated to build domestic semiconductor production capacity, Mezger points out that advanced chip manufacturing depends on an ecosystem encompassing specialized materials, highly advanced manufacturing equipment, and experienced personnel. Replicating this ecosystem is a long-term process that cannot be easily accelerated by policy measures alone. Another notable factor is the focus on manufacturing. Taiwan's semiconductor industry is built on a foundry business model—contract manufacturing for clients worldwide—developed over decades. This allows Taiwanese fabs to focus almost exclusively on efficiency, reliability, and process optimization. Competing regions, including China, often attempt to develop design, manufacturing, and domestic supply chains simultaneously, a far more complex undertaking. Mezger also addresses broader geopolitical efforts to diversify semiconductor production, particularly through new fabs announced in the United States and Europe. While these investments may improve regional resilience, he notes they do not directly translate to leadership in the most advanced technology nodes. The decisive factor remains experience, not merely the number of factories. In summary, this dynamic helps explain why Taiwan's position in advanced semiconductors remains difficult to undermine. The full interview with Marco Mezger is available as part of the TaiwanPlus "Now You Know" series on YouTube, where the author answers viewer questions about global chip production and industry dynamics