Electronics manufacturing will stay in Asia for the foreseeable future, despite the apparent shift in new semiconductor sector investments away from China, according to an analysis by Moody's Analytics. Moody's Analytics states that less than 10% of the world's supply of sophisticated chips is produced in the US and Europe combined, with all of the manufacture taking place in Taiwan and South Korea.

Asia leads the world in chip production, which has certain benefits. A regional supply chain that meets the demands of the industry has been established and tremendous economies of scale have resulted from the centralization of chip manufacture among a few major corporations.

According to the report, while South Korean and Taiwanese tech giants like Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. specialize in high-end semiconductors, manufacturers in Southeast Asia supply legacy chips, which are less sophisticated but still very efficient chips used in consumer appliances, defense equipment, and cars.

Japanese businesses often focus on offering supplies and machinery, including specialty chemicals and equipment needed for semiconductor manufacturing. Moody's Analytics claims that there are drawbacks to Asia's dominance in the tech industry. For example, Taiwan's economy depends so heavily on electronics that its trade and output numbers almost exactly match the peaks and valleys of worldwide semiconductor billings. The Taiwanese economy benefits from the success of chips just as much as it does from their failure.