The New Semiconductor Go Game

Calculated Moves, Infinite Possibilities

From smartphones and cars to game consoles and smartwatches, our everyday lives run on tiny semiconductor chips — the “brains” that power modern technology.

As demand grows across electronics, communications, cars, and artificial intelligence, the global semiconductor industry is on track to reach US$1 trillion by 2030¹. But behind every chip is a complex journey, from design and manufacturing to assembly and testing.

Around the world, countries and companies are competing and collaborating in this high-stakes race to shape the future of technology.

Where, then, are the dynamic shifts occurring within the semiconductor value chain?

Need for raw
materials

China dominates the mining and critical materials processing and has imposed export restrictions in response to U.S. measures², constraining key semiconductor materials like gallium and germanium.

Moving away from traditional efficiency

Recent tariff and policy shifts go beyond traditional protectionism, using tariffs as secondary sanctions alongside subsidies and technology restrictions. In response, semiconductor companies are adopting regional ecosystems that prioritise supply-chain stability. The industry now mirrors the Go "Chuban” phase, where intensified moves collectively determine control.

Shifts in perceived regional strongholds

Asia currently accounts for about 80% of global wafer fabrication, packaging, and advanced semiconductor manufacturing. While key players such as China, Taiwan, South Korea, and Japan continue to dominate, this concentration is gradually easing as other regions seek to reduce reliance on Asia and rebuild domestic capabilities.

EU and U.S.
initiatives

Europe is ramping up local chipmaking under the EU Chips Act, investing in Germany’s Dresden–Magdeburg corridor to reduce reliance on Asia and the U.S. However, high energy costs and skilled-labour shortages remain despite a €5 billion government support³. U.S. leverages its leadership in chip design and Electronic Design Automation and tightens advanced-technology export controls on China.

Year 2020 - 2025
• 130 projects, 28 states in the U.S.
• >$600 billion private
investments⁴ with $154 billion from TSMC for new fabs⁵

Asia’s Response to Global Semiconductor Shifts

Asia is actively defending its dominant position in the semiconductor value chain by deploying bold national strategies across key markets.

South Korea

Maintains leadership in memory chips with SK Hynix and Samsung
Market share increase from 14% to 21% in one year, from AI-related demand for HBM
KRW 471 trillion investments, aiming to build 16 new fabs by 2047⁶

Japan

Over ¥10 trillion investments for next seven years
2025 national budget includes fundings for Rapidus, an AI chipmaker, with the government becoming a major shareholder⁷

China

Nearly 50% of the chip industry is state-controlled, driving local sourcing and development
Alibaba has reportedly developed a 7nm AI chip, although performance remains uncertain⁸

India

Attracting leading companies even with limited footprint
Micron and Tata Electronics announced significant investments. A joint venture between HCL and Foxconn is underway too⁹

Southeast Asia is emerging as a key semiconductor hub, especially in Assembly, Testing and Packaging (ATP), driven by competitive labour costs, strategic locations and supportive policies, attracting foreign investments and recent expansions regionally.

A New Semiconductor Landscape in the Making

A decade ago, major shifts in the semiconductor value chain might have been overlooked. Today, they are actively reshaping the industry. Global CAPEX is rising as regions prioritise scaling domestic and regional manufacturing to support both traditional chips and emerging AI workloads. Manufacturing has become a strategic lever, akin to moves in a “Go” game—anchoring operations, navigating uncertainties, and opening growth paths.

Though this transition brings higher costs, fragmented technologies and geopolitical complexity, it unlocks opportunities for early, decisive players. As such, the “Chuban” phase may be prolonged in this semiconductor “Go” game.

LAPP's role in the Semiconductor Ecosystem

LAPP works closely with machine builders and OEMs long-term, applying our expertise in high-performance cables and connectors to ensure reliable power and data transmission in industrial and semiconductor equipment.

Certified to global standards (UL, CSA, IEC)

Approved across Asia (IS, CCC, KC, AS/NZS)

Our manufacturing and sales network across the U.S., Europe, and Asia offers flexible sourcing and localised support, creating operational advantage for customers to source wherever, whenever.

LAPP’s cable harnessing facilities analyse new concepts, validate feasibility, and support every stage from design to large-scale manufacturing, meeting customers’ unique requirements.

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