Semiconductor industry in Taiwan is planning to get highest growth in upcoming time. Kung Ming-hsin, the head of Taiwan’s economic planning agency, the National Development Council, told Reuters the business opportunities presented by the global transformation to a digital economy were “very, very enormous”.
Kung says that from now to 2025, Taiwan companies have planned more than T$3 trillion ($107 billion) in investment in the semiconductor sector, citing expansion plans from chip giants including TSMC and Powerchip Semiconductor Manufacturing Corp.
“Once they are built, Taiwan’s competitors in semiconductors in the next decade will be very few,” Kung said in an interview in his office building, which overlooks the presidential office.
Taiwan’s semiconductor firms are ramping up production to tackle a global chip shortage, which has affected everything from carmakers to consumer products, and meet booming demand following the work-from-home trend during the COVID-19 pandemic.
Soaring demand is set to continue, driven by 5G, artificial intelligence and electric vehicles, Kung said.
“In the next decade or even longer there won’t be oversupply for semiconductors,” he added, when asked if the massive investment plans could have a downside.
Taiwan is currently in the grip of its worst drought in more than half a century, but Kung said the impact on chip firms was limited at present, citing the amount of water they are able to recycle and the location of their main factories in Hsinchu in northern Taiwan, and in the island’s south.
To that end, the government is helping the industry develop the next generation of semiconductor manufacturing technology like 1 nanometre and beyond with funding support and talent recruitment programmes in the works, he added.