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20 Largest Semiconductor Companies in the World
Ramish Cheema
11 min read

In This Article:

In this piece, we will take a look at the 20 largest semiconductor companies in the world. For more companies, head on over to 5 Largest Semiconductor Companies in the World.

The semiconductor industry is the backbone of the technology sector. This is due to the fact that every gadget and computer needs a processor to function - whether its a small Juul or a massive supercomputer. At the same time, and especially when it comes to high end technology devices, semiconductors can only be manufactured by a few large companies - which leads to scarce supply and huge demand.

At the same time, chipmakers are not the only semiconductor companies. The entire ecosystem is made up of countless firms, that range from those that provide the tools to design chips, to those that supply essential raw materials and chemicals for preparing silicon for its journey inside the massive manufacturing machines, and the suppliers of the machines themselves. Then, more firms are responsible for providing quality control testing equipment as well as packaging the chips inside boards that enable them to power up computers and other devices. This is not to mention that while all these firms are responsible for making the chips, their services wouldn't be required if it weren't for designers such as Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) who are responsible for generating demand in the chipmaking sector by creating new product blueprints.

Therefore, it's clear that the chipmaking industry is one of the most diverse sectors out there, and unlike many, it is also one that has crucial links in the supply chain that are isolated in geographical regions. For instance, the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) - the world's largest contract chip manufacturer - has the bulk of its chip production in Taiwan. However, the industry that is responsible for aiding TSMC in making these chips - the design and quality equipment firms mentioned above - is located primarily in the U.S., to a vast geographical divide.

US-China Semiconductor Wars

This divide is also one of the hottest topics in the technology industry these days. After determining that China is using advanced chip products designed for civilian use for military purposes, the U.S. government has placed limits on the technologies that can be shipped to the country. The latest set of these rules came under the Biden Administration, with the Commerce Department announcing in October 2022 that American origin equipment that could end up being used to develop advanced chips in China would face new rules for approval. Those with a Green Card would be limited from working in the Chinese chipmaking industry, and equipment destined for advanced foundries that make chips smaller than 14-nanometers would face a 'presumption of denial' under American law. These rules seem to be having the intended effects, as China's largest chipmaker, the Semiconductor Manufacturing International Corporation (SMIC), has repeatedly outlined this year that its new facility in Beijing is facing delays due to "bottleneck equipment" and China's imports of semiconductor manufacturing machines have also dropped by 15% last year. Of course, other firms such as TSMC have also reported equipment delays, so it's uncertain what magnitude of the delays has been influenced by the new sanctions.

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