Taiwan will remain a major hub for semiconductor production and account for 79% of global production capacity through 2030. That came in a report by the Institute for Information Industry on Tuesday, April 28.

The report also said that despite Taiwanese semiconductor companies expanding abroad, over 80% of manufacturing processes will remain in Taiwan in 2026. Jerry Peng from III’s Market Intelligence and Consulting Institute said that geopolitics and industrial policies are driving a split in the industry, with the U.S. strengthening its dominance in design, while Taiwan and South Korea shoring up their advantages in manufacturing. Meanwhile, Japan and the EU focus on the supply of raw materials and equipment. He added that all this indicates the global division of labor in semiconductors is shifting from a past focus on efficiency to emphasizing both security and resilience.

The III report states that Taiwan will account for 83% of total semiconductor production capacity this year, with China taking up 10%, Singapore and Japan 3% each, followed by the U.S. at approximately 1%.