# Semiconductors: Chokepoints and risks

Chip designers and fabs making logic, memory, analogue and power chips from silicon

Source page: https://www.materialinsights.org/industries/semiconductors/risks/

#### Chokepoints and risks

- Taiwan hosts over 70% of sub-10 nm logic capacity and TSMC about 70% of foundry revenue, so a Taiwan Strait disruption would halt most advanced chip supply^[2](https://www.semiconductors.org/wp-content/uploads/2024/05/Report_Emerging-Resilience-in-the-Semiconductor-Supply-Chain.pdf)^,^[3](https://evertiq.com/news/2025-09-02-2q25-foundry-revenue-surges-146-tsmc-extends-market-dominance).
- One supplier makes all EUV lithography tools and 87% of lithography overall^[2](https://www.semiconductors.org/wp-content/uploads/2024/05/Report_Emerging-Resilience-in-the-Semiconductor-Supply-Chain.pdf), and three makers take about 92% of DRAM revenue^[6](https://evertiq.com/design/2025-11-26-global-dram-revenue-jumps-309-in-3q25).
- Export controls on tools, design software, chips and minerals (gallium, germanium) are tightening between the US and China, and three firms hold over 85% of EDA^[5](https://newsletter.semianalysis.com/p/eda-market-primer).
- Fabs need firm power and very large volumes of ultra-pure water, which constrains new sites including in India.
- Demand is cyclical and now leans heavily on AI computing, which drove most of the 26% growth in 2025^[1](https://www.wsts.org/76/103/Global-Semiconductor-Market-grows-26-in-2025-to-796B).

## Other sections

- [Overview](https://www.materialinsights.org/industries/semiconductors/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/semiconductors/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/semiconductors/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/semiconductors/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/semiconductors/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/semiconductors/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/semiconductors/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/semiconductors/sources/index.md)