2026/9/14

MOEA Teams Up with Global Partners to Build New Semiconductor Landscape for AI Era

The Ministry of Economic Affairs (MOEA) held the “2026 Semicon Network Summit” on September 1, bringing together government officials, industry leaders, researchers, and academics from 38 countries to discuss the future of semiconductors in the age of AI. President Lai Ching-te attended the Summit, underscoring Taiwan's commitment to international cooperation and technological innovation. Building on the global semiconductor partnership network that was established during the last summit, this year's summit focused on opportunities and challenges arising from the rapid growth of AI. Discussions centered on advanced technologies, cross-sector applications, and deeper international supply chain collaboration in order to shape the next phase of global semiconductor development. Minister of Economic Affairs Kung Ming-Hsin highlighted four key themes, including advanced semiconductor technologies and materials, international cooperation on silicon photonics, AI-driven robotics and chip innovation, and cybersecurity resilience in the semiconductor industry. Minister Kung emphasized that these areas are critical to the future competitiveness and stability of both the semiconductor and AI sectors. The Minister also expressed the importance of AI adoption among Taiwan's small and medium-sized enterprises (SMEs). With approximately 1.71 million SMEs accounting for 98% of all businesses and employing around 80% of the workforce in Taiwan, expanding AI capabilities within this sector is seen as essential for Taiwan's long-term economic growth. The MOEA will thus continue promoting policies that support President Lai's goal of enabling one million Taiwanese SMEs to adopt AI technologies. In prerecorded video remarks, U.S. Under Secretary of State Jacob Helberg called on partner economies to keep investing and building strong and resilient connections. The United States and Taiwan are partners in safeguarding technological security that will shape developments throughout this century. Additionally, SEMI President and CEO Ajit Manocha emphasized Taiwan's key role in the global semiconductor ecosystem and the importance of international collaboration in strengthening supply chain resilience and industry growth. A highlight of the summit was President Lai's presentation of Medals of Economic Contribution to Doris Hsu, chairperson of GlobalWafers, and Sanjay Mehrotra, chairman, president, and CEO of Micron Technology. The medals honored their longstanding contributions to the semiconductor industry, Taiwan's industrial development, and global semiconductor cooperation. Held under the theme "Trust, Resilience and Prosperity," the summit featured participation from high-level representatives of the United States, Japan, the EU, Poland, Israel, and other international partners. Discussions focused on strengthening trusted semiconductor networks, advancing next-generation technologies, and expanding cooperation in the AI era. The MOEA will continue working closely with like-minded partners around the world to advance sustainable growth and unlock new opportunities in both the semiconductor and AI industries.  

2026/9/10

Taiwan commits major funding to semiconductor facilities, chip design software

At the Cabinet's weekly meeting Thursday, Premier Cho Jung-tai received a National Science and Technology Council (NSTC) report on the establishment of core semiconductor facilities across Taiwan and the development of cutting-edge chip design software. The premier said the government plans to invest NT$300 billion (approximately US$9.5 billion) in semiconductors through 2033, combining hardware and software upgrades to further reinforce Taiwan's key position in global democratic supply chains. The premier said Taiwan has a world-leading semiconductor industry ecosystem, but must continue investing in R&D for future-oriented technologies and the cultivation of high-level talent to sustain the industry's competitive edge. The government is therefore actively helping domestic companies forge international connections; promoting next-generation chip design and applications of advanced manufacturing processes; and facilitating R&D in key technologies such as silicon photonics, quantum technologies and unmanned vehicles. Premier Cho noted that the NSTC's Taiwan Chip-based Industrial Innovation Program addresses hardware development through its nationwide establishment of core semiconductor facilities, and software development through its advancement of cutting-edge chip design software. The program upgrades core infrastructure at domestic academic and research institutes; accelerates R&D and deployment of key technologies; strengthens talent development; expands support services for startups; creates state-of-the-art process validation environments and pilot production lines for advanced semiconductor technologies; and spurs industrial innovation through equipment sharing and process integration. Furthermore, in the area of electronic design automation (EDA), the program bolsters the nation's capacity for independent development, advances next-generation EDA tools and key EDA technologies for heterogeneous integration and advanced packaging, and creates a platform for Taiwan's semiconductor EDA supply chain.

2026/9/1

President Lai attends 2026 EU Investment Forum

On the afternoon of September 1, President Lai Ching-te attended the opening of the 2026 European Union Investment Forum. In remarks, President Lai said that Taiwan and Europe are becoming economically closer and that Taiwanese companies are investing in Europe at a larger scale. The president expressed hope that in the face of global industrial competition and the restructuring of supply chains, Taiwan and Europe can combine their advantages in semiconductors and deepen their strategic partnership, and that they can work toward agreements on double taxation and investment so that together, they can build a global supply chain that is more secure, diverse, and resilient. A transcript of President Lai’s remarks follows: It’s a pleasure to join you all at [the] EU Investment Forum. I would like to thank the organizers and all [the] participants from Europe and Taiwan. Taiwan and Europe have become economically closer over the years. Last year, bilateral trade with [the] EU reached almost US$75 billion, making the EU Taiwan’s fifth largest trading partner. Over the last decade, Taiwanese investment in the EU surged by 650 percent, compared with the decade before. We are very happy to hear the recent announcement from TEEMA [Taiwan Electrical and Electronic Manufacturers’ Association] about establishing a technology park in Poland. In the future, it will be easier for Taiwanese [companies] to invest in [the] EU and cooperate with local industries. All this showcases our robust economic ties. It also indicates that Taiwanese companies are not just focused on individual investment projects. More and more, they’re taking an integrated approach to investment in Europe, with a longer time frame and larger scale. We also look forward to more opportunities for Taiwan-Europe cooperation in global technology. On that note, SEMICON Taiwan 2026 kicks off tomorrow. It will bring together leading semiconductor and tech companies, to explore opportunities in AI chips and advanced packaging. Across the globe, countries are boosting their industrial capabilities. In June, the European Commission announced [the draft] Chips Act 2.0, which aims to speed up commercialization, and bring chips to the market faster. It shows that Europe is determined to build a more competitive chip industry and make its supply chains more resilient. Taiwan and Europe each have unique advantages in semiconductors. Taiwan already has a highly integrated industrial ecosystem. And Europe offers world-class capabilities in R&D, equipment, materials, and high value-added manufacturing. By combining our advantages, and building a strategic partnership, we can create even greater shared value. Together, we can shape a global semiconductor ecosystem that is more secure, diverse, and resilient. We hope the European nations will promote agreements on double taxation and investment with Taiwan. This will help unlock our immense potential for investment and industrial cooperation. Looking ahead, Taiwan will keep working closely with Europe to build stronger supply chains, and more resilient economies. Together, we will contribute even more to global prosperity and sustainable development. To close, I wish this event great success. I’m confident your discussions today will open up more opportunities for cooperation between Taiwan and Europe. I also hope your innovative ideas lead to concrete investments, bringing fruitful outcomes for all of us. Thank you. Also in attendance at the event was Head of the European Economic and Trade Office Lutz Güllner.  

2025/12/26

Development of the Semiconductor Industry and Taiwan’s Strategic Position in the Era of AI

In 2025, the global semiconductor market—driven by Artificial Intelligence (AI), High-Performance Computing (HPC), automotive electronics, and demand for high-speed communications—has fueled technology growth worldwide. A market once dominated by computing, memory, and communications is undergoing rapidly transformation due to Large Language Models (LLMs), the expansion of data centers, and the popularization of electric vehicles (EVs). This shift has fueled surging demand for high-end Graphics Processing Units (GPUs), AI accelerators, High Bandwidth Memory (HBM), and advanced packaging. The World Semiconductor Trade Statistics (WSTS) predicts that the global semiconductor market will reach USD 760.7 billion in 2026, with an annual growth rate of 8.5%, hitting a record high. Meanwhile, Semiconductor Equipment and Materials International (SEMI) forecasts global semiconductor manufacturing equipment sales to reach USD 138.1 billion in 2026. This reflects a broad expansion across the entire value chain—from upstream equipment suppliers to downstream chip manufacturers—and underscores that the industry’s growth momentum is increasingly driven by AI computing and the rapidly rising demand for data centers. Global Semiconductor Industry Development Trends The demand for training large-scale AI models has risen rapidly, making high-performance GPUs, AI server processors, and advanced packaging the focus of global technological development. US companies NVIDIA and AMD are launching new-generation AI accelerators and relying on global supply chains to expedite the buildout of High Bandwidth Memory (HBM) and advanced packaging capacity. As data centers continue to scale, the need for high-speed data transmission has grown sharply. The adoption of Co-Packaged Optics (CPO) and silicon photonics accelerated in 2025, with US companies including Intel, Broadcom, Cisco, Marvell, and NVIDIA, viewing optoelectronic integration as a critical strategy to increase bandwidth and reduce power consumption. The memory market has also re-emerged as a key driver of growth, as HBM delivers significant improvements in capacity and bandwidth. Micron in the United States, along with Korea’s SK Hynix and Samsung, have all ramped up related investments. In automotive electronics, demand for Microcontroller Units (MCUs), Insulated Gate Bipolar Transistors (IGBTs), silicon carbide MOSFETs (SiC MOSFETs), and in-vehicle sensors continues to climb, fueled by the growth of Advanced Driver Assistance Systems (ADAS) and electric vehicles. Power semiconductors and in-vehicle computing platforms are seeing expanding applications as vehicle electrification and intelligence advance. As a result, both the volume and complexity of automotive chips are rising year by year, forming a strong and sustained source of momentum for the sector. Simultaneously, geopolitics continuously reshape the pattern of supply chain. The USA, EU, and Japan have extended subsidy policies aimed at promoting localization and diversifying risk, leading to a more geographically distributed global capacity layout. This trend has strengthened countries’ efforts to secure key manufacturing technologies and critical points within the semiconductor supply chain. Taiwan’s Semiconductor Industry: Advancing with Global Trends and Deepening International Collaboration Driven by rising demand for AI and HPC, Taiwan’s semiconductor supply chain is poised for accelerated expansion and cross-domain integration in 2025. As the advanced manufacturing capability and advanced packaging demand grow at the same time, the leading foundry and Outsourced Semiconductor Assembly and Test (OSAT) companies in Taiwan – TSMC, ASE Technology Holding, and Powertech Technology Inc., maintain high capacity and also lead the high-end Printed Circuit Board (PCB), heat dissipation, and server Original Design Manufacturer (OEM). The continued expansion of CoWoS (Chip on Wafer on Substrate), SoIC (System on Integrated Chips), and HBM production lines further strengthens Taiwan’s central role in the mass production of AI accelerators and data-center chips. In response to global trends in high-speed transmission and optoelectronic integration, Taiwan’s communications networking, photonics, and server supply chains are accelerating investment in CPO and silicon photonics. Taiwanese companies such as LandMark Optoelectronics and Luxnet Corporation are making significant progress in optical modules, optical engines, and high-speed transceivers, collaborating with server vendors to introduce next-generation designs. This allows Taiwan to expand beyond AI chip manufacturing to become a key supplier of high-speed transmission and optoelectronic systems. Foreign companies are also deepening their presence in Taiwan. With expansions in advanced manufacturing and packaging, major international semiconductor equipment and materials suppliers—such as Applied Materials, Lam Research, KLA, DuPont, and NITTOBO (Japan)—continue to strengthen their local engineering support, technical services, and spare-parts capabilities. According to SEMI, Taiwan is expected to remain one of the world’s largest semiconductor-equipment markets by 2026. The advancement of wafer fabrication, advanced packaging, and optoelectronic integration technologies encourages foreign firms to expand services and collaborative activities in Taiwan. Additionally, rising demand for CPO and silicon photonics has attracted foreign companies to partner with Taiwan’s supply chain in module validation, product development, as well as ramp-up mass production, which is accelerating the commercialization of next-generation optoelectronic technologies. Overall, Taiwan’s semiconductor industry in 2025 is undergoing a clear shift toward higher-value activities. AI-driven innovations are accelerating manufacturing capabilities and packaging technology, enabling high-speed transmission and the integration of optoelectronics, and prompting foreign companies to collaborate with local companies on technology. Together, these developments further reinforce Taiwan’s strategic position at the center of the global semiconductor supply chain. Conclusion The global semiconductor industry is entering a new era centered on AI, HPC, and automotive electronics. Advanced manufacturing capabilities and packaging have already become the commanding heights of global technological competition. The localization of the supply chain and risk diversification fortified reliance on a reliable manufacturing base. Taiwan continues to play an irreplaceable role in the global market with a complete supply chain, high-efficiency manufacturing, and a robust R&D foundation. Looking ahead, Taiwan retains a lead in AI chip manufacturing, advanced packaging, and specialized manufacturing capabilities, and continues to hold a key role in the global semiconductor ecosystem through cooperation with international enterprises to deepen supply chain connections.

2025/12/12

Swift Engineering and TaMiCo Technology Taiwan, Key Drivers of the Semiconductor Industry’s Upgrades, to Expand Production Capacity in Tainan

InvesTaiwan today (12th) approved the additional investment of 2 SMEs in Taiwan, including Swift Engineering Co., Ltd. and TaiMiCo Technology Taiwan Ltd. To date, the Three Major Programs for Investing in Taiwan have attracted over NT$2.5891 trillion in investments from 1,696 companies, and are expected to create 162,318 domestic employment opportunities. Of which, the Action Plan for Accelerated Investment by SMEs has attracted approximately NT$589.4 billion in investments from 1,151 SMEs, creating 41,080 domestic employment opportunities; applications of 14 companies are currently pending review. Swift Engineering Co., Ltd. is a professional manufacturer of facility management and control systems, piping assembly, and equipment, and provides one-stop integrated solutions from planning and design, manufacturing, construction and installation, to after-sales service. With its wealth of experience in the semiconductor, optoelectronics, and fine chemical industries, the company is able to meet the diverse needs of customers for plant expansion and process upgrade. Swift Engineering is able to execute multinational projects, an ability rare among local companies. It has participated in factory construction projects in numerous countries, such as the Kumamoto fab of Japan Advanced Semiconductor Manufacturing (JASM), which is a subsidiary of TSMC, and the Arizona plant in the United States, showing its important position in the international semiconductor supply chain. As its customers move on to new product generations and higher precision processes, Swift Engineering decided to invest over NT$400 million to build a new smart factory in Shanhua District, Tainan, and plans to hire an additional 14 local employees. The new plant will fully incorporate AI and smart manufacturing technologies to enhance the processing of pipe fittings and their system equipment. It will also install a solar PV system to gradually achieve energy conservation and carbon reduction. Swift Engineering will continue to expand its production capacity and increase the added value of its products through this investment, actively implementing its market strategy of being rooted in Taiwan while looking to the world. KoMiCo is the first company in South Korea to successfully commercialize semiconductor component cleaning and coating technology. Optimistic about the development of Taiwan's semiconductor industry, KoMiCo established TaiMiCo Technology Taiwan Ltd. in 2006, providing precision cleaning and special coating services for semiconductor equipment components. The company has gained the recognition of major semiconductor customers around the world for its outstanding professional capabilities and technical strength. TaiMiCo Technology Taiwan plans to invest over NT$1.4 billion to build a new plant and R&D center in Tainan Industrial Park, so as to maintain its core competitiveness and expand its product applications. The company plans to hire an additional 65 local employees. The company will utilize AI technology and a digital management system in its new plant to comprehensively increase its precision cleaning and coating capacity. The company will also increase the percentage of green electricity use to become aligned with the international trend of environmental protection. Going forward, TaiMiCo Technology Taiwan will continue to focus on cleaning and coating technologies, expand its scope of business, and actively develop manufacturing technologies for key components, such as semiconductor equipment chambers, striving to create maximum value for customers around the world. This is the first application from a foreign company since the “Three Major Programs for Investing in Taiwan 2.0” was launched this year, and the company has already publicly signed a letter of intent with the Ministry of Economic Affairs. TaiMiCo Technology Taiwan is committed to meeting customers' needs for the manufacturing and recycling of precision equipment parts, and aims to support the development of advanced processes and advanced packaging technologies in Taiwan's semiconductor industry. Spokesperson of InvesTaiwan: Acting COO Chen Ming-Chu Telephone: 02-2311-2031 Ext. 802 Mobile Phone: 0938-637-901 Email: nicole@invest.org.tw