The production value of Taiwan's semiconductor industry is expected to increase this year by more than 24 percent from 2020, while the COVID-19 pandemic has created uncertainty in the global semiconductor supply chain, according to Mark Liu (???), chairman of Taiwan Semiconductor Manufacturing Co. (TSMC).
Speaking on Wednesday at the online annual meeting of the Taiwan Semiconductor Industry Association (TSIA), also headed by Liu, he said the pandemic has been going on for almost two years, which has had an adverse impact on the global semiconductor supply chain.
Taiwan remained competitive in the global semiconductor industry by continuing to serve as the number one supplier in the semiconductor manufacturing sector as well as in the integrated circuit packaging and testing services sector, said Liu.
In addition, Taiwan remained the second-largest supplier in the IC design sector despite the impact from COVID-19, added Liu.
TSMC commands a share of over 50 percent by itself in the global pure play foundry industry, while ASE Technology Holding Co. is the world's largest IC packaging and testing service provider with an almost 25-percent global market share.
While the output of the local semiconductor industry topped NT$3 trillion (US$107 billion) in 2020, up 20.9 percent from 2019, the figure is expected to grow further in 2021 and surpass NT$4 trillion, which would be up 24.7 percent from a year earlier, said Liu.
Liu did not elaborate on the drivers for significant growth in 2021, but market analysts have attributed this to solid demand in emerging technologies such as artificial intelligence and 5G applications, while a booming stay-at-home economy also created more business opportunities in the industry.
Liu said he hoped young talent would join the local semiconductor industry to help the industry make further progress.
The TSIA has come up with comprehensive environmental, social and governance (ESG) strategies that demonstrate the local semiconductor industry's ambitions of making gains in climate change and green manufacturing, cuts in carbon emissions, and a push for circular economy and corporate governance to fulfill its social responsibility and win trust from society, said Liu.
Meanwhile, Liu urged the government to map out a long-term plan for land, water, and electricity supply as well as environmental protection in a bid to facilitate corporate sustainability.
On the international front, Liu said the TSIA will remain active in participating in discussions on a wide range of topics in the World Semiconductor Council (WSC) and safeguard the rights and benefits of Taiwanese suppliers.
The WSC is comprised of the semiconductor industry associations of the United States, South Korea, Japan, Europe, China, and Taiwan.
Liu said trade tensions between Washington and Beijing are expected to continue to pose challenges for every industry in the world, including the semiconductor industry.
Taiwan has gained the upper hand in the global semiconductor market, but the China government has been gearing up to develop its own semiconductor industry through talent recruitment, fund injections, and tax incentives, so the Chinese semiconductor industry is expected to pose more competition for Taiwan while cooperation across the Taiwan Strait in the industry is likely to continue simultaneously, said Liu.
On Tuesday, Morris Chang (???), founder of TSMC, addressed the Yushan Forum, a dialogue for innovation and progress organized by the Taiwan-Asia Exchange Foundation (TAEF), saying that Taiwan is very competitive in the global semiconductor industry.
While the U.S. is pushing for domestic semiconductor manufacturing with Intel Corp. planning to expand its investments in the country, Chang said it is hard for the U.S. to achieve this since it does not have a comprehensive supply chain like Taiwan.
According to Chang, the U.S. currently owns a 17-percent share in global semiconductor manufacturing, down from a peak of 42 percent.
Besides an incomplete supply chain, Chang said, production costs in the U.S. are high which is another reason their goal of boosting domestic semiconductor manufacturing will not succeed.
Source: Focus Taiwan News Channel