Issue Capturing semiconductor value without owning a foundry

Summary

The global semiconductor market is expected to reach $1 trillion by 2030, with computing responsible for 41% of demand. Production of chips at 7 nm and below, which are critical for AI, is concentrated in a handful of manufacturers including TSMC, Samsung, Intel and GlobalFoundries. A new foundry typically costs around $20 billion and can reach $40 billion, putting domestic manufacturing out of reach for many economies. Strategies differ, with the UK choosing to design chips and outsource production while the EU uses its 2023 Chips Act to build regional manufacturing. Dubai Future Foundation suggests innovation hubs can instead act as regional distribution centres, capturing value from the supply chain through logistics, testing and integration services.