Intel leads consortium for chiplet production: AMD, Qualcomm, Arm, TSMC, and Samsung make up a dream team of silicon producers, but the exclusion of Nvidia and Apple raises questions.

The Russia-Ukraine war and growing China-Taiwan tensions may prolong existing semiconductor supply chain issues. At this year’s meeting, the US-EU Trade and Technology Council concluded that government agencies and industry leaders must bring semiconductor manufacturing onshore and increase investment in its research and development.

The news: Taiwan Semiconductor Manufacturing Co. (TSMC) announced its record spending plan for 2022 to meet continued demand for semiconductors in various industries.

China’s tech giants are racing to own the technology of the metaverse: Tencent, Baidu, Oppo, and Huawei are beating US counterparts to the AR/VR patent punch.

Semiconductor sales are expected to normalize after a record-setting 2021 predicated by various shortages and extended gaps between orders and deliveries.

China and the advanced economies of the Asia-Pacific region (Japan, South Korea, Australia, New Zealand, Taiwan, Singapore, and Hong Kong) will all be trudging along in the single digits by 2024, with many in the very low single digits. The story in Asia-Pacific will soon center on India and Southeast Asia, where growth will remain robust for the rest of our forecast period.

Southeast Asia’s only advanced economy will produce patterns similar to peers like Taiwan, Australia, and New Zealand. After growing by 25.5% last year, it will see only 2.0% expansion this year. Indonesia Will Lead the Way, as 5 Out of 6 Countries Surge.

The Russia-Ukraine war and growing China-Taiwan tensions may prolong existing semiconductor supply chain issues. At this year’s meeting, the US-EU Trade and Technology Council concluded that government agencies and industry leaders must bring semiconductor manufacturing onshore and increase investment in its research and development. What Does This Forecast Mean for Marketers?

Building foundries in key countries follows a global trend to decentralize chip production from supply chains rooted in Taiwan and China. TSMC, the world’s largest chipmaker, is looking to Arizona, Germany, and Japan for its future plants, ostensibly to serve the burgeoning electronics and automotive industries in those areas.

Droughts in Taiwan impeded production due to stringent water use restrictions. Rolling power outages and coal shortages are similarly constraining production, with more than 10 Taiwan-based semiconductor companies closed temporarily last month. One-third of Asian chipmakers, 67% of North American companies, and 63% of European companies say it’s difficult to find qualified workers.

Besides China, only the US and Taiwan avoided negative ad spend growth last year. Both were flat. This year, no ad market will grow by less than 3%, and many will increase significantly. China has had the fastest-growing ad market since 2018, but starting this year, that position will go to India (31.7%), and it will remain No. 1 in growth through 2025.

Taiwan, home to chip manufacturing giant TSMC, accounted for over 60% of global foundry revenues in 2020, according to TrendForce. That market dominance eclipses the next leading country (South Korea), which made up just 18% of global foundry revenues.

Droughts in Taiwan also impeded production due to stringent water use restrictions. One-third of Asian chipmakers, 67% of North American companies, and 63% of European companies say it’s difficult to find qualified workers. North America and Asia also reported rising labor costs, which further complicates their factory staffing issues.

While the plans are still in preliminary stages of seeking potential partners and assessing needs, they mark a shift in strategy for TSMC, which has historically concentrated the majority of its chip production in Taiwan. Why it's worth watching: Building foundries in key countries follows a global trend to decentralize chip production from supply chains rooted in Taiwan and China.

We also expect that Amazon will make moves internationally, having filed “Amazon Pharmacy” trademarks or patents in the following markets: Canada, the UK, Australia, Brazil, China, Egypt, the EU, India, Israel, Japan, Mexico, Singapore, Taiwan, Turkey, and the UAE. While that doesn’t indicate imminent moves, it does signal Amazon’s intention to scale its online pharmacy beyond US borders.