Semiconductor production outside China and Korea increased in 2022

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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

China 28.27 29.62 -5%
Taiwan 26.82 24.94 +8%
South Korea 21.51 24.98 -14%
North America 10.48 7.61 +38%
Japan 8.35 7.8 +7%
Europe 6.28 3.25 +93%
Rest of the world 5.95 4.44 +34%
Total 107.64 102.64 +5%
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