Industrial Development Administration, Ministry of Economic Affairs

The Project of Assisting Materials Development for Semiconductor Industry

Taiwan's semiconductor industry is centered on wafer manufacturing, from upstream IC design to downstream packaging and testing, and has developed a semiconductor industry cluster. In 2021, the industry's output value exceeded NT$4 trillion, making Taiwan the world's number one in the global wafer foundry and packaging and testing industry.

The IC design industry ranks second in the world, second only to the United States. According to a March 2022 research report by the Semiconductor Association, if Taiwan is unable to produce chips, global electronics industry revenue will be affected. This shows that Taiwan plays a pivotal role in the global semiconductor industry. The global semiconductor materials industry will exceed US$64.27 billion in 2021. The semiconductor materials market is expected to grow by 8.6% in 2022, hitting a new high of US$69.8 billion in market size. Among them, the wafer materials market will grow by 11.5% to US$45.1 billion, closing

The packaging materials market is expected to grow by 3.9% to US$24.8 billion. Taiwan's demand for semiconductor materials in 2022 will be nearly 14.7 billion U.S. dollars (first period: 2/3 + second period: 1/3), accounting for 22.8% of global demand and ranking first. However, Taiwan's high-end semiconductor materials currently rely on imports. Considering how Japan's control of photoresist and other materials has impacted the Korean semiconductor industry, along with the changing global situation that raises concerns about semiconductor material supply, it is necessary to strengthen the independence of materials throughout the upstream, midstream, and downstream supply chains of the domestic semiconductor industry to consolidate industrial competitiveness. In order to make Taiwan's semiconductor industry chain more complete and shape Taiwan into a "semiconductor advanced process center", we will promote the "Å Generation Semiconductor Plan-Priority R&D Controlled Materials Plan" to encourage Chinese industry players to invest in the research and development of controlled projects and some non-regulated materials projects. It also encourages domestic material manufacturers to conduct beta site field verification in series with downstream companies to enhance the confidence of end application manufacturers, accelerate material commercialization, and accelerate the localization of material technology.