Germany Among the Top Nine Global Semiconductor Producers, Study Finds
Germany is among the nine most important countries in the global semiconductor production, a study by the Ifo Institute and Econpol Europe has shown. The study was presented at the Munich Security Conference on Friday.
South Korea, Taiwan, Singapore, Malaysia and China produce over 50 percent of the chips that are traded globally, according to the study. Germany, Japan, the United States and the Netherlands, on the other hand, provide a significant part of the equipment for chip production. “If one looks not only at the trade in finished chips, but also at the equipment for production and raw materials, Germany exports more than it imports” said Lisandra Flach, head of the Ifo Center for Foreign Trade. “Dependences in the global semiconductor production are not one-sided, but mutual.”
Trade data also shows that China and Taiwan are the main exporters of all types of integrated circuits. The United States, Germany and Japan, meanwhile, play a significant role in the production of power semiconductors and optical chips, as well as in sensor technology. South Korea is the market leader in memory chips.
There are approximately 75 different types of semiconductors, which are used in various applications and require different production requirements. The high complexity of the production process leads to a concentration of the semiconductor production on a few countries, resulting in the risk of supply chain disruptions with severe economic and security policy consequences.
“All chips in the future to be produced exclusively in Europe is equally associated with high uncertainties and is little realistic. Also, reacting to the supposed Chinese-Taiwanese dominance with trade restrictions or export controls is not a goal-oriented approach” said Dorothee Hillrichs, co-author of the study. “Instead, governments should consider differentiated political approaches that promote innovation in every phase of the production process, from development and production to assembly, testing and packaging.