The production value of the nation’s IC sector could hit a record high this year based on Taiwan’s strong competitive edge in the global market.
The government estimates the sector’s production value will grow to about NT$1.75 trillion (US$58.81 billion) this year, a 9.3 percent increase from NT$1.6 trillion last year, Minister of Economic Affairs Chang Chia-juch (張家祝) said yesterday at the opening of this year’s SEMICON Taiwan, the largest trade show in the region for the IC industry.
Taiwan has the upper hand in the IC industry thanks to a comprehensive local production chain covering design, foundry operations and IC packaging and testing services, Chang said.
SEMICON, which runs through tomorrow, proves the success of Taiwan-based semiconductor businesses, which have developed into a highly cost-efficient and competitive force over the past three decades, he said.
Taiwan has transformed itself into a hub for advanced 12-inch wafer plants and is now an ideal place for foreign investors to work with semiconductor development, he said.
Local demand for semiconductor manufacturing equipment stands at about NT$286 billion a year — or 25.8 percent of global spending on the equipment — making Taiwanese companies the largest group of buyers in the industry, Chang said.
He said annual domestic demand for IC materials reaches about NT$303 billion, or 21.1 percent of the global total, making Taiwan No. 1 in that category as well.
In terms of foundry operations, Taiwan is home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), along with many leading IC packaging and testing services providers such as Advanced Semiconductor Engineering Inc (日月光).
In IC design, MediaTek Inc (聯發科) is capable of holding its own against multinational rivals, including US-based IC giant Qualcomm Inc, as it has seen sizeable gains in the fast-growing China market.