Document Type : Review Article
Authors
1
Department of Industrial and Systems Engineering, School of Engineering, Northern Illinois University: DeKalb, Illinois, USA
2
Department of Computer Science, Faculty of Sciences, University of Lagos, Akoka, Lagos, Nigeria
3
Department of Biochemistry, Faculty of Pure and Applied Sciences, Federal University of Wukari, Wukari, Taraba State, Nigeria
4
Department of Computer Science, Faculty of Science and Technology, Babcock University, Ilishan-Remo, Nigeria
Abstract
The semiconductor manufacturing industry represents one of the most complex and globally integrated supply chains in modern manufacturing. This review examines the evolution of semiconductor supply chains from basic silicon processing to sophisticated global manufacturing networks serving diverse markets through a systematic literature review methodology. Industry reports were analysed from SEMI and Semiconductor Industry Association, peer-reviewed academic publications, and financial data from leading semiconductor companies covering the period 2020-2024, with particular emphasis on post-pandemic supply chain developments. The analysis employs a multi-dimensional framework examining structural characteristics, dynamic trends, strategic responses, and risk factors. Key quantitative findings include: global wafer fabrication capacity reached 42 million wafers quarterly in Q4 2024; silicon wafer shipments declined 2% to 12,174 million square inches in 2024, with a projected 10% recovery to 13,328 million square inches in 2025; and the semiconductor supply chain is projected to reach $600 billion by 2024, driven by artificial intelligence demand. Geographic analysis reveals that Taiwan, South Korea, and China account for 75% of global capacity, with advanced manufacturing nodes under 7 nm showing even higher concentration. The industry demonstrated operational resilience in 2024 despite disruptions, including 40% reduction in Suez Canal traffic and geopolitical tensions. However, emerging challenges, including AI-driven demand shifts, geopolitical fragmentation, and sustainability requirements, are driving fundamental restructuring from efficiency-optimised models toward balanced approaches incorporating resilience and strategic autonomy. The review synthesises developments in manufacturing capacity, regional diversification efforts, and technological advances reshaping global semiconductor supply networks. Findings have significant implications for industry stakeholders pursuing strategic diversification, policymakers implementing regional capacity initiatives, and researchers developing semiconductor-specific supply chain frameworks.
Graphical Abstract
Keywords
Subjects
OPEN ACCESS
©2026 The author(s). This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this license, visit: http://creativecommons.org/licenses/by/4.0/
