According to a new report by Visual Capitalist, the production of electronic equipment is heavily concentrated in Asia, and just four countries control more than four-fifths of the world’s digital hardware capacity.
Reported by ITNA, this analysis, based on data from Ember and citing reputable sources such as the International Energy Agency and Bloomberg, ranks countries by their share of global digital hardware production capacity for 2024 and 2025.
By digital hardware, the report means a wide range of products including semiconductor manufacturing, displays, printed circuit boards, smartphones, computers, and other related electronic equipment.
China’s unrivaled dominance
The report’s findings show that China alone holds 58.8 percent of the world’s digital hardware production capacity; a figure roughly six times the share of Taiwan, the second country on the list. In other words, China’s production capacity exceeds that of all other countries combined in this ranking.
China’s position in this field stems from its extensive manufacturing infrastructure that encompasses finished electronic products as well as displays and printed circuit boards. The country’s mass production networks connect factories into dense clusters of suppliers, making China the world’s primary hub for hardware manufacturing.
According to the report, China is seeking to consolidate its position in the industry with a new five-year plan focused on semiconductors, artificial intelligence, and other strategic technologies.
The plan prioritizes advancement in the integrated circuit supply chain, including chips, so Beijing can reduce its dependence on Western technology. China’s target in this area is to achieve more than 30 trillion yuan (about $4.5 trillion) in operating revenue from related industries by 2030.
East Asia, the heart of the electronics supply chain
After China, Taiwan, South Korea and Japan together account for another 21.7 percent of global capacity. Each of these markets plays a distinct role in the electronics ecosystem, and major companies such as TSMC, Foxconn, Samsung, BOE and Sony operate in the region.
Taiwan is especially important in semiconductor manufacturing and electronic assembly, while South Korea has significant capacity in chip and display production. Japan remains a major producer of electronic components and supporting technologies for the hardware supply chain.
India and Vietnam, leaders of the second tier
According to the report, beyond the top four countries, electronic production capacity drops sharply. India ranks fifth with a 3.8 percent share, slightly ahead of Vietnam at 3.6 percent.
The United States follows with a 2.9 percent share; a figure that, despite the country’s prominent role in semiconductor design and innovation, is relatively small.
Thailand and Mexico are the only other countries with shares above one percent, holding 1.3 and 1.2 percent of global capacity respectively.
This ranking clearly highlights the gap between the locations of the headquarters of the world’s largest technology companies and the actual sites where their hardware is produced. While the U.S. hosts many leading technology companies and chip designers, the physical manufacturing capacity underpinning the global electronics supply chain remains heavily concentrated in Asia.