Explanation for Taiwan's leadership in advanced semiconductor manufacturing

Have you ever wished you could directly bombard someone from the semiconductor industry with your questions? Industry veteran Marco Mezger sat down in front of the camera for TaiwanPlus's "Now You Know" series to answer viewer questions—and to explain in concrete terms why things work the way they do. One recurring question in the interview is why Taiwan continues to dominate advanced semiconductor manufacturing and whether China is realistically capable of taking over this position. According to Mezger, the short answer is no—at least not in the foreseeable future. Taiwan accounts for the majority of global semiconductor production and an overwhelming share of the most advanced logic chips. This position, Mezger says, is not the result of a single technological breakthrough, but rather the outcome of decades of continuous investment in manufacturing processes, equipment, and engineering know-how. Advanced semiconductor manufacturing relies less on isolated innovations and more on mastering thousands of tightly controlled process steps on an industrial scale. China, on the other hand, faces structural hurdles that go beyond mere capital investment. While significant funds have been directed toward building domestic semiconductor capacity, Mezger emphasizes that modern chip manufacturing requires an entire ecosystem—including specialized materials, sophisticated production equipment, and experienced technical personnel. Building such an ecosystem is a long-term process that cannot be accelerated by policy alone. Another factor discussed is the manufacturing focus. Taiwan's semiconductor industry has grown over decades around the foundry model, continuously refining contract manufacturing for global clients. This has allowed Taiwanese fabs to focus almost exclusively on yield, reliability, and process optimization. Competing regions, including China, often try to build chip design, manufacturing, and domestic supply chains simultaneously—a far more complex undertaking. Mezger also addresses the broader geopolitical efforts to diversify semiconductor production, particularly through new fab projects in the US and Europe. While these investments can increase regional resilience, they do not automatically lead to leadership in the most advanced technology nodes. Experience—not just the number of new fabs—remains a decisive factor. Taken together, these dynamics explain why Taiwan's position in advanced semiconductors remains difficult to challenge. The full interview with Marco Mezger is available on YouTube as part of the TaiwanPlus "Now You Know" series, where he answers more viewer questions on global chip manufacturing and industry dynamics in greater detail