September 26, 2025 /SemiMedia/ — Asia holds more than 75% of the world’s semiconductor manufacturing capacity and is expected to maintain its dominance in the next five years, Moody’s Corporation said on Thursday.

The region’s leadership spans logic, memory and discrete/analog/other chips, driven by cost efficiency, a strong ecosystem and advanced expertise.

According to Moody’s, Taiwan and South Korea dominate advanced nodes, producing most chips below 5nm, while Japan leads in photoresists and silicon wafers. Mainland China has rapidly expanded mature nodes (28nm and above) and now accounts for about one-third of global supply.

Despite pandemic-driven shortages and geopolitical concerns over supply chain concentration, Asia retains clear strengths across materials, equipment, manufacturing, assembly, testing and packaging. Mainland China and Taiwan region remain central to backend operations, while South and Southeast Asia increasingly provide chips for automotive and consumer electronics markets.