Semiconductor supply chains shift toward regional hubs

The geography of semiconductor manufacturing is shifting measurably, according to industry data released this week, with regional fabrication hubs in three continents now accounting for a third of new capacity investment — up from a fifth two years ago.

Subsidy programmes in the United States, Europe and Japan have pulled forward fab construction that executives say would otherwise have concentrated in East Asia. Analysts note, however, that advanced packaging and key chemical inputs remain heavily clustered, leaving the supply chain exposed at different chokepoints.

The reshuffling carries a cost premium: chips from newer regional fabs run an estimated 15 to 30 per cent more expensive, a gap governments are covering with incentives that expire within the decade.