Global Semiconductor Manufacturing Hubs Are Being Reorganized
The United States, China, and Korea are simultaneously pouring billions of dollars into securing semiconductor self-sufficiency. The U.S. CHIPS Act provides billions to domestic manufacturing, China pursues semiconductor independence as a strategic national initiative, and Korea accelerates investment in leading-edge processes. This is not merely a technology competition but a signal of supply chain reorganization.
The Background of Localization Strategy: The CHIPS Act and Geopolitical Risk
After the United States introduced the CHIPS and Science Act in 2022 to promote domestic semiconductor manufacturing, the global supply chain began to shake. With tensions across the Taiwan Strait, Chinese technology restrictions, and post-pandemic supply instability converging, countries have embarked on building autonomous foundations. What was once an industry driven purely by economics, semiconductor manufacturing has now become central to national strategy.
INTC closed at $91.69 on October 20, 2026, down 24.71% from a month earlier. With a net margin of -19.8% indicating serious strain, the revenue growth rate of 25.4% suggests production volumes are actually increasing. U.S. government support is backing INTC’s domestic factory expansion, yet the market still questions the profitability of this investment.
Why Global Semiconductor Companies Are Faltering Now: Four Factors
1. U.S. Incentivizes Allied-Country Manufacturing: Through CHIPS Act subsidies, the U.S. government is encouraging allied manufacturers such as INTC, Samsung, and SK Hynix to build domestic factories. INTC is constructing new fabs in Arizona and Ohio, but time and cost overruns have sent its stock price plummeting. The semiconductor industry has traditionally been concentrated in Taiwan and Korea, but the landscape is shifting to one where advanced economies manufacture directly.
2. China Pursues Self-Reliance: China aims to reduce import dependence by intensively developing domestic players like SMIC and CXMT. In response to U.S. technology export restrictions on EUV equipment, China is investing in developing next-generation process equipment in-house. ASML’s growth is constrained without Chinese customers; its current revenue growth rate stands at 55.2%, still heavily reliant on traditional hubs in Taiwan, Korea, and the United States.
3. Korea Invests in Leading-Edge Processes: SK Hynix and Samsung are competing to expand EUV (extreme ultraviolet) processes. To maintain competitiveness in leading-edge processes, Korea has no choice but to rely on ASML equipment. ASML closed at $1,630.84 on October 20, 2026, with a P/E of 38.9, relatively stable, and a net margin of 34.1%. Simultaneous investment by Korea and the U.S. ensures near-term demand for ASML but leaves the risk of losing Chinese customers.
4. Weakening of Traditional Chip Designers: QCOM closed at $175.71 on October 20, 2026, with a net margin of 21.0% but revenue growth of -4.0%, declining. QCOM is a fabless company that does not own its own fabs, facing weakened demand in smartphones and cloud chips and falling behind in the AI chip development race. The emerging trend of combining design with manufacturing—the IDM model—as localized production bases grow is also unfavorable for pure designers like QCOM.
Why Leading Companies Still Remain: Structural Strengths and Weaknesses
ASML’s Monopoly Position: In the semiconductor equipment market, ASML’s EUV scanner is currently the only choice. Because the U.S., Korea, and Taiwan all need ASML equipment, long-term demand for ASML is likely to persist even as localization advances. However, growth slowdown due to closure of the Chinese market is unavoidable.
INTC’s Disconnect Between Government Support and Performance: INTC is the largest beneficiary of U.S. government support, but achieving profitability for its new factories will likely take years. A net margin of -19.8% reflects current structural challenges, and revenue growth of 25.4% is not translating into profits.
QCOM’s Weakening Design Competitiveness: Despite rising demand for AI chips, QCOM’s market share is shrinking—a structural problem. Nvidia’s GPU monopoly and in-house chip development by Microsoft and Google are narrowing QCOM’s position. The mega-trend of localized manufacturing offers limited direct revenue opportunities for fabless players like QCOM.
Summary
As the global semiconductor industry shifts its center of gravity from economic efficiency to national strategy, reorganization of manufacturing bases and companies is accelerating. ASML, as the sole supplier of leading-edge process equipment, has secured long-term demand, but INTC’s profitability recovery is delayed despite government support, and QCOM is losing ground in chip design competition. The stock prices of these three companies already reflect these structural changes.
This article is for information only and is not investment advice.