2024 Annual Report on Taiwan's Integrated Circuit Exports

I. Overview

This annual report is based on import and export data released by the Bureau of Foreign Trade, Ministry of Economic Affairs, Taiwan, covering the period from January to December 2024. It focuses on analyzing the trade volume, distribution by major countries (or regions), and trends in integrated circuit (IC) trade during this period. Additionally, the report references other public data sources to provide a more comprehensive understanding of the trade environment, supply and demand dynamics, and policy context for integrated circuits. It aims to offer valuable insights for industry professionals, researchers, and the public.

II. Basic Overview of Taiwan’s Integrated Circuit Industry

The annual global trade value of integrated circuits is approximately $1 trillion, accounting for 4% of the total global merchandise trade value (approximately $23.3 trillion), making it a significant commodity. By comparison, global annual agricultural trade, including soybeans, corn, wheat, sugarcane, oilseeds, coffee, beef, and spices, is about $2 trillion. The trade value of integrated circuits has reached half the scale of global agricultural trade, demonstrating its vast importance.

As a global leader in IC exports, Taiwan accounts for roughly one-sixth of the world's total IC export value annually. In 2024, for example, Taiwan's IC export value reached $146.9 billion, representing one-third of its total annual exports ($475.1 billion). This underscores Taiwan's critical role in global IC trade and its prominence as a cornerstone of Taiwan's foreign trade.

Although Taiwan’s primary IC production remains concentrated on the island, its global production capacity is steadily expanding. This development aims to meet regional market demand, mitigate risks, and enhance supply chain resilience. These changes are reflected in Taiwan’s IC export data.

For instance, Taiwan Semiconductor Manufacturing Company (TSMC) had seven wafer fabs under construction globally in 2024, including one in Arizona, USA. This project, with a total planned investment of $65 billion, is being developed in two phases, targeting the production of advanced 4nm and 3nm process nodes. In addition, a wafer fab in Kumamoto, Japan, is expected to begin operations by the end of 2024, focusing on 22/28nm and 12/16nm processes to meet local demand for automotive and consumer electronics. Meanwhile, TSMC is also expanding into Europe, with a wafer fab under construction in Dresden, Germany, marking its first production base in Europe. This fab is designed to support European demand for high-performance computing and automotive chips, using mature 22/28nm process technology to promote localized supply chains.

III. Taiwan’s Integrated Circuit Exports in 2024

In 2024, Taiwan’s IC exports totaled $164.9 billion, accounting for 34.7% of its total annual exports ($475.1 billion). This ratio represents a decline from 2023, when IC exports reached $166.7 billion, accounting for 38.5% of total annual exports ($433 billion).

• Other ICs (HS 854239): Exports in 2024 amounted to $127.3 billion, a 3.6% year-on-year decline, representing 77.2% of Taiwan’s total IC exports.

Major export destinations included Mainland China, Hong Kong, Singapore, South Korea, and Japan, collectively accounting for over 77% of exports. Additionally, Malaysia, the United States, Vietnam, India, Thailand, and the Philippines each imported over $1 billion worth of Taiwanese ICs in 2024. As key components of modern electronics, ICs are primarily exported to industrialized Asian countries (or regions) for assembly, with finished electronic products then re-exported globally.

Country-specific trends showed a 5.4% increase in Mainland China and an 8.9% rise in South Korea. Meanwhile, exports to the US surged by 126%, Vietnam by 66%, and India by 49%.

• Memory Chips (HS 854232): Exports in 2024 totaled $20.4 billion, a slight 1% increase compared to 2023, accounting for 12.4% of Taiwan’s total IC exports.

Major export destinations were Singapore, Mainland China, Hong Kong, Japan, and South Korea. Singapore and South Korea saw year-on-year increases of 16% and 33%, respectively, following South Korea’s 400% growth in 2023.

Conversely, exports to Mainland China, Hong Kong, and Japan decreased by 29%, 28%, and 14%, respectively, continuing a two-year trend of declining imports from Taiwan in these regions.

IV. Major Export Markets

1）Mainland China: As Taiwan’s largest IC buyer in 2024, Mainland China imported $48.4 billion, accounting for 30% of Taiwan’s total IC exports. Taiwan’s ICs also comprised half of Mainland China’s total imports from Taiwan, valued at $97 billion in 2024.

2）Mainland China remains the world’s largest IC importer, with purchases exceeding $350 billion in 2023. Given that many Taiwanese ICs are indirectly imported into Mainland China via Hong Kong and other regions, the actual share of Taiwanese ICs in Mainland China’s market is higher than reported by Taiwan Customs, reaching approximately 40%. Hong Kong: Hong Kong ranked as Taiwan’s second-largest IC buyer in 2024, importing $36.8 billion, accounting for over 20% of Taiwan’s total IC exports, though this represented a 15% year-on-year decline. ICs comprised 69% of Hong Kong’s total imports from Taiwan ($53.6 billion).

3）Hong Kong is the world’s largest IC export hub, with re-exports via Hong Kong Customs (2023: $190.4 billion) accounting for 20% of the global IC export market (2023: $931 billion). A significant portion of ICs originating from Taiwan is re-exported through Hong Kong to Mainland China, Vietnam, India, South Korea, and the US. Singapore: Singapore is Taiwan’s third-largest IC buyer and the world’s third-largest IC importer. In 2024, Taiwan exported $21 billion worth of ICs to Singapore, accounting for 12.8% of its total IC exports, with little year-on-year change. Similar to Hong Kong, Singapore’s IC trade is predominantly re-export oriented. As a result, Singapore is the world’s fourth-largest IC exporter, behind Hong Kong, Mainland China, and Taiwan.

4）Malaysia, the US, Vietnam, and India: These countries ranked as Taiwan’s 6th to 9th largest IC buyers in 2024. While their combined import volume remains only half of Mainland China’s, they have seen rapid growth over the past 3–4 years, reflecting shifts in the global IC supply chain. Vietnam, in particular, achieved a compound annual growth rate (CAGR) of 62% over the past five years, while India’s CAGR reached an impressive 168%.

V. Conclusion

1. Integrated circuits remain Taiwan’s cornerstone industry, comprising 34.7% of Taiwan’s total export value in 2024.
2. Other ICs (HS 854239) accounted for $127.3 billion in exports in 2024, representing 77.2% of Taiwan’s total IC exports, despite a 3.6% year-on-year decline.
3. Mainland China, Hong Kong, and Singapore were Taiwan’s top three IC buyers in 2024. Mainland China’s imports were particularly significant, with ICs constituting half of its total imports from Taiwan. However, due to high re-export rates in IC trade (e.g., via intermediary regions), Taiwanese ICs directly accounted for only 40% of Mainland China’s total IC imports. This highlights the complexity and globalized nature of IC trade networks.
4. Malaysia, the US, Vietnam, and India, although trailing behind Mainland China in import volume, have shown rapid growth in demand for Taiwanese ICs in recent years. This growth trend reflects the impact of global geopolitical shifts on the IC supply chain. Amid increasing diversification efforts and intensified competition in technology, these countries are deepening their reliance on Taiwan’s technological products to secure advantages in emerging industries. This underscores Taiwan’s growing strategic importance as a key node in the global IC supply chain.