Industry News

New Semiconductor Fabs Plans in 2025 Demonstrate a Shift in Aims for Countries

March 18, 2025
Industry News

New Semiconductor Fabs Plans in 2025 Demonstrate a Shift in Aims for Countries

March 18, 2025

The global semiconductor industry is set for further expansion in 2025, with 18 new fabrication plants planned worldwide, according to SEMI’s quarterly World Fab Forecast. While some countries are choosing to reinforce their domestic semiconductor production, others appear to be positioning themselves strategically amid the ongoing trade tensions and supply chain concerns.

Where Are the New Semiconductor Fabs Being Built?

  • Americas: 4 fabs
  • Japan: 4 fabs
  • China: 3 fabs
  • Europe and Middle East: 3 fabs
  • Taiwan: 2 fabs
  • Southeast Asia: 1 fab
  • Korea: 1 fab

Semiconductor Investment Trends by Region

The Americas

The U.S. continues to increase its domestic semiconductor manufacturing, with four new fabs planned to start construction in 2025. This follows the introduction of the CHIPS and Science Act, which encouraged both American and international companies to invest heavily in U.S. production facilities. The country’s focus on reducing reliance on imports from foreign suppliers appears to be in response to the recent chip shortages. There is also an aim to be more competitive in the semiconductor production world rankings.

Japan

Japan is seeing significant semiconductor investment, with four new fabs to start construction in 2025. One of the most notable projects is the Japan Advanced Semiconductor Manufacturing (JASM) facility – —a joint venture between TSMC, Sony, and Denso. This suggests that Japan is making a serious effort to strengthen its semiconductor industry and compete with other major players.

Additionally, the country’s position in global trade could make it an appealing alternative for companies looking to avoid tariffs imposed on Chinese-made chips. With ongoing trade restrictions between the U.S. and China, Japan and other Asian countries may be viewed as a more stable and secure location for semiconductor production.

China

Despite trade restrictions limiting access to the newest semiconductor technology, China is still building new fabs. The new facilities are expected to focus on mature and legacy technologies rather than advanced semiconductor processes, allowing China to maintain a strong presence in the industry.

Europe and the Middle East

While Europe has committed to increasing semiconductor production with initiatives like the European Chips Act, it is still behind the U.S. and Asia in new fab construction. Only three new facilities are planned for 2025, which seems low compared to its competition.

Some European countries have made moves to secure investment, with TSMC planning to build a factory in Germany. However, compared to Japan’s rapid expansion, Europe’s slower pace suggests that its initiative or planning may not be as focused or well-funded.

What About the UK?

Unlike the U.S. and Japan, the UK has not seen major semiconductor fab investments. While the country has announced plans to support its semiconductor sector, the scale of investment remains small compared to other regions.

One possible reason for this is that the UK is focusing more on specialised areas such as chip design rather than large-scale manufacturing. Another factor could be the cost and complexity of building semiconductor fabs: without significant government incentives and a relatively high cost for labour and land, companies may see greater advantages investing elsewhere.

What Does this Mean for the Industry?

The global semiconductor industry continues to shift, with different regions prioritising domestic production for different reasons: The U.S. is working to reduce foreign reliance, Japan is positioning itself as a strong alternative to China, and China is adapting to restrictions by focusing on mature technologies. Meanwhile, Europe’s slower expansion raises questions about its role in the industry, and the UK remains largely absent from large-scale semiconductor manufacturing.

With locations in strategic supply chain regions globally, Cyclops Electronics is perfectly positioned to help you with any supply chain difficulties you may face. Harnessing our decades of experience in the semiconductor industry, we can ensure you face minimal disruptions and can ship and source your stock from anywhere in the world.

More in this Category

Industry News
February 25, 2025

Instant obsolescence affecting 35% of components becoming obsolete

Currently, approximately 35% of components that become obsolete face instant obsolescence, according to Datalynk. Some sources are expecting instant obsolescence to continue to rise in the coming year, in line with new tariff introductions and raw material shortages.
Read post
Industry News
January 30, 2025

2025 electronics industry forecast: insights from Cyclops Group CEO David Yodaiken

To start 2025, we spoke to our Group CEO, David Yodaiken, who shared his industry predictions for the year ahead.
Read post
Industry News
November 21, 2024

Industry insight: AI boom could lead to semiconductor shortages

Artificial intelligence (AI) is being increasingly implemented across all industries, which is leading some to forecast semiconductor shortages.
Read post