Hi,
That is a matter of interpretation. This is from 2019, the annual report of the Semiconductor Industry Association based in Washington:
https://www.semiconductors.org/wp-co...book-FINAL.pdf
It concludes the China leads the worlds electronic manufacturing by attaining 38% consumption of global semiconductors, followed by the US at 19%.
On page 3 of the same report reveals that semiconductor fabrication, that is the processing of silicon wafers into integrated circuits that China is a small player at 6%
with the US head and shoulders ahead at 45%.
The distinction is between
using semiconductors to make saleable products and being able to
fabricate the silicon integrated circuits. Chinese electronic manufacturing
is highly dependent on importing integrated circuits as they do not manufacture many themselves.
The CCP has made a national priority of trying to end this reliance on the US and others as a source of integrated circuits. SMIC is the biggest Chinese domestic manufacturer with 6B
in revenue in 2021, compare that to Intel's 75B in the same year, 52B for Samsung and 45B for TSMC.
For all the efforts of the Chinese they are yet to come anywhere close to competing in the conversion silicon wafers into ICs. They do produce large numbers of low value semiconductors, but the high end
stuff they cannot compete. Not the least the US has blocked the sale of EUV lithography equipment which will stymie China's aim to produce high end semis anytime soon.
From the same report shows that the US still and very handily leads the world in research and development of semiconductors, beating Japan and Europe combined. All that has slipped, from the US
standpoint, is the actual fabrication, and that can be corrected. All-in-all the report shows that the US position is actually very strong indeed.
I note also that you are concerned that if the Chinese invade Taiwan that all the facilities will fall into Chinese control. Firstly I am dubious that China for all its size could defeat Taiwan,
they have been preparing for this war for decades. Additionally the US and Japanese commitment to the sovereign integrity of Taiwan should give China pause.
Even were the Chinese to succeed they'll find TSMC's cupboards are bare....there won't be one single EUV machine left by then. That would not stop the disruption that the sacking
of TMSC would cause globally, but the Chinese would never profit from it.
Craig