The Development of Taiwanese Semiconductor Industry
Holding a near monopoly in semiconductor manufacturing, Taiwan lies in the heart of the world’s semiconductor industry. According to Industrial Economics and Knowledge Center (IEK) of the Industrial Technology Research Institute (ITRI), it is estimated that the output value of Taiwan’s semiconductor sector will reach NT $4.7 trillion in 2022, among which the output value of IC manufacturing is NT $2.8 trillion, accounting for 62% of the world’s total, ranking the first in the world, the output value of IC packaging and testing is NT $0.7 trillion, accounting for 61.5% of the world’s total, ranking the first in the world, while the output value of IC design is NT $1.2 trillion, accounting for 24.3% of the world’s total, ranking the second in the world. In 2022, the overall output value of Taiwan's semiconductor industry will grow by 15.6% compared to last year, which is much higher than the global average growth rate of 4.0%, demonstrating Taiwan’s leading position in the world’s semiconductor industry.
Taiwan’s semiconductor industry has a complete upstream and downstream supply chain system, which, with wafer manufacturing as the core, ranges from the self-established upstream IC design sector to the downstream packaging and testing sector. Taiwan semiconductor manufacturers have become highly trusted supply chain partners of many global enterprises such as Apple, Qualcomm, AMD, NVIDIA, NXP and Infineon due to their high flexibility in production and strong crisis management ability.
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