Taiwan will not give up its superiority in semiconductors
Introduction:
Taiwan will not give up its superiority in semiconductors: Between the 1970s and a few years ago, Taiwan’s semiconductor sector seemed important but unattractive.
Chip manufacturing plants
Chip manufacturing plants (fabric for short) kept the global electronics industry running, but it was the tools that used the chips that made the headlines.
Not anymore. The geopolitical heavyweights in the world now consider that these precision processing tools not only operate all types of machines, but also the economies of these countries.
America provides $50 billion in subsidies to bring the chip industry back to the country.
Europe has similar plans, not least a plan to reduce its dependence on Taiwan, which neighboring China claims as part of its territory.
Rapidus, a joint venture of Japanese electronics companies, aims to mass-produce advanced chips in 2027, just two years after Taiwan Semiconductor Manufacturing Corporation (TSMC), the Taiwanese chip pioneer, begins production. Similar silicone manufacturing.
Competition and poaching employees
South Korea’s Samsung, TSMC’s main competitor, hopes to begin producing such chips in 2025. For its part, China wants to build an independent chip industry that does not have to rely on technology imports, which America is strangling.
The dangers for Taiwan are great, as long as everyone depends on the island for semiconductors, and according to prevailing thinking, even China will not change the geopolitical status quo.
The dangers for Taiwan are great, as long as everyone depends on the island for semiconductors, and according to prevailing thinking, even China will not change the geopolitical status quo.
If the chips are produced elsewhere, this “silicon armor” becomes weak.
More realistically, this sector, which is home to eight of the 10 highest-paying companies in the country, provides great jobs.
Taiwanese chip companies also have reasons to maintain production in the country. Excessive expansion abroad weakens domestic research networks and makes it easier for foreign companies to poach employees.
ShutterstockThis explains why TSMC factories will not arrive there. Supported in America to advanced technological levels when it will be completed in 2025 and 2026. The latest technology will remain in the country.
Last year, TSMC spent About $5 billion in research and development, up 30 percent from 2021, pouring most of the money into Taiwan.
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In July this year, the company opened a new research and development center for 7,000 employees next to its headquarters in Hsinchu.
As long as R&D is taking place in the country, chip manufacturers’ most advanced factories will likely remain there as well.
A.S.E. The largest chip packaging company in the world.
Taiwanese companies active in other parts of the supply chain make similar calculations. A.S.E. The largest chip packaging company in the world.
Putting these processing tools in a box was a not-so-glamorous job. As it becomes increasingly difficult to shrink the width of these transistors to less than a few billionths of a meter, companies like A.S.E. Help boost processing power with smart packages that connect chips together.
ASE’s annual research and development budget has doubled. Between 2017 and 2022, reaching $800 million. As with TSMC, much of this will remain in Taiwan.
The government’s latest plan is to support Taiwanese chip design, within an industry dominated by American companies such as AMD. And Nvidia. Media Tech, the largest design company in Taiwan, is ranked fifth in the world
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A Legacy of Excellence:
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Technological Expertise:
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Strong Industrial Ecosystem:
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Government Support:
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Technological Advancements:
Taiwan’s government
Taiwan’s government remains determined to maintain the country’s chip lead. It has long devalued the Taiwanese dollar, which supports exports, including chips, and supported energy and water prices, both of which are consumed by chip manufacturers.
Maurice Chang, retired co-founder of TSMC, hinted last month that Taiwan’s high-speed rail network itself may have been designed with the chip industry in mind to allow workers to move between production sites.
Taiwanese chip design: Taiwan will not give up its superiority in semiconductors
The government’s latest plan is to support Taiwanese chip design, within an industry dominated by American companies such as AMD. And Nvidia. MediaTek, Taiwan’s largest design company, ranks fifth in the world (by Taiwanese chip standards) in terms of design sales.
There is no doubt that the company wants to rise in the rankings, and the government seems keen to help it do that by aiming to raise Taiwan’s share of global chip design revenues from 21 percent to 40 percent.
Last month, the Ministry of Economic Affairs announced the provision of modest support worth $25 million to help small and medium semiconductor companies design less advanced chips.
More goodies will be included in the government’s next ten-year plan for the chip industry, scheduled for next year. Taiwan will not give up its shield without a fight.
Conclusion: Taiwan will not give up its superiority in semiconductors
I’m Hassan Saeed, a Clinical Psychology graduate deeply engaged in the realms of WordPress, blogging, and technology. I enjoy merging my psychological background with the digital landscape. Let’s connect and explore these exciting intersections!
