Taiwan’s semiconductor industry, a cornerstone of its economic fabric, has achieved remarkable success over the past few decades. However, the future of this vital sector hinges on stronger international partnerships, according to insights shared at a recent supply chain forum in Taipei. Su Meng-jung, Senior Vice President of the Industrial Technology Research Institute (ITRI), highlighted the necessity for Taiwanese companies to embrace global collaboration to mitigate risks within supply chains and to enhance the development of advanced technologies.
Recent developments show that the global semiconductor market is rebounding, with projections estimating its value may reach NT$29.98 trillion (approximately US$1 trillion). Su attributed this revival in part to the burgeoning demand for artificial intelligence technologies, signalling a transformative era for the sector. Despite facing recent volatility, the long-term outlook remains optimistic.
Historically, Taiwan’s ascent in the semiconductor landscape is rooted in strategic cooperation with international partners, particularly with countries like the United States, Japan, the Netherlands, and the United Kingdom. This cooperative spirit has been essential, especially given the shifts caused by the pandemic and escalating geopolitical tensions, which have prompted many chipmakers to prioritise resilience and risk reduction. Su stressed the importance of cultivating a capable workforce through international collaboration, asserting that future growth will depend on a robust talent pool forged across borders.
Further supporting this perspective, Liu Wen-hsiung, President of ITRI, reiterated the importance of focusing on innovation, supply chain security, resilience, and shared prosperity. He emphasised that establishing regional platforms in Europe, the United States, and Japan is crucial for ensuring long-term stability in the semiconductor supply chain.
In an aligned effort, Taiwan’s National Science and Technology Council (NSTC) is initiating a 10-year semiconductor innovation programme that aims to foster international cooperation in chip development. Plans include establishing overseas training bases supported by the Taiwan Semiconductor Research Institute, which would facilitate technology transfer and closer cooperation on integrated circuit design. This initiative aims not only to bolster Taiwan’s own capabilities but also to help foreign countries adapt to and integrate Taiwan’s advanced semiconductor training systems.
Taiwan’s strategic position is further highlighted by President Tsai Ing-wen, who underscored the nation’s critical role in producing more than half of the world’s semiconductors and virtually all advanced chips. During her remarks at the 2023 EU Investment Forum, she cited the necessity of international collaboration for resilient supply chains, pointing to successful partnerships with European companies such as ASML, Merck, and Air Liquide. The potential for TSMC to invest in Germany is a noteworthy development, showcasing Taiwan’s commitment to diversifying its global footprint.
The overarching narrative of Taiwan’s semiconductor industry is one of adaptation and foresight. Taiwanese firms are increasingly investing in Southeast Asia, Japan, and Europe in response to changing global dynamics and competition from China. Reports indicate that Taiwanese investments in these regions surged by 146% in 2023, amounting to US$2.2 billion, reflecting a strategic pivot amidst economic slowdowns and competitive pressures. Companies like TSMC and Foxconn are taking proactive steps not only to meet rising demand but also to solidify their positions in the global supply chain.
In summary, while Taiwan has laid a strong foundation in the semiconductor sector, its future success will depend significantly on how well it forges deeper international collaborations. This approach will be essential not just for securing its own technological advancements, but also for contributing to a more resilient global semiconductor ecosystem.
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Source: Noah Wire Services
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