BERLIN – Global semiconductor production is a key sector of the global economy in which Asian countries such as South Korea, Taiwan, Singapore, Malaysia, and China play a dominant role. According to a recent study conducted by the Ifo Institute and the EconPol Europe network, more than half of the chips traded worldwide come from these countries. However, Germany is also increasingly becoming a crucial player in the international semiconductor industry—particularly in the areas of production technology and the supply of raw materials.
Germany as a Key Player in Chip Manufacturing Equipment
While Asian countries lead in the production of semiconductor products, Germany, Japan, the United States, and the Netherlands provide essential equipment and machinery that are indispensable for chip manufacturing. “When we consider not only the trade in finished chips but also the equipment for manufacturing and raw materials, Germany exports more than it imports,” said Lisandra Flach, head of the Ifo Center for International Economics, at the Munich Security Conference. This underscores the growing importance of Germany in the semiconductor value chain.
According to Flach, dependencies in global chip production are not one-sided but rather mutual: “The international semiconductor industry is highly interconnected and based on a complex division of labor.”
China and Taiwan Leading in Integrated Circuits
Nonetheless, China and Taiwan remain the leading exporters of integrated circuits and dominate the global trade of these essential components. These two countries are indispensable, especially for the production of standard chips and processors.
In contrast, South Korea has established itself as the market leader in memory chips, holding a significant global market share in this segment. These chips are essential for numerous electronic devices, such as smartphones, computers, and servers.
Strong Position in Power Semiconductors and Sensor Technology
In certain niches of semiconductor production, the United States, Germany, and Japan play a central role. Power semiconductors, which are crucial for the automotive industry and energy supply, are primarily produced by these countries. They also dominate the production of optical chips and innovative sensors, which are increasingly used in areas such as autonomous driving, medical technology, and Industry 4.0.
This specialization in high-quality semiconductor products and advanced technologies provides Germany and its partner countries with a strategic advantage in the global market.
Strategic Strengthening of the Semiconductor Industry
The Ifo Institute study highlights that global semiconductor production is not only dependent on Asian manufacturers, but is also significantly shaped by European and North American players. Given global supply chain risks and geopolitical tensions, investments in European semiconductor production are increasingly becoming a focus of political strategy.
- Germany has already taken important steps in recent years to strengthen its position in the global semiconductor industry. Expanding domestic production and promoting strategic alliances with international partners could prove crucial in ensuring supply security and technological sovereignty in the future. (zai)