Taiwan President Ma Ying-Jeou Speaks to 500+ Industry Leaders at SEMICON Taiwan Gala Dinner
Semiconductor Industry a Key Engine of Economic Growth in Taiwan
Taiwan president Ma Ying-Jeou presented to over 500 semiconductor industry leaders and diplomatic representatives from around the world at the SEMI Leadership Gala Dinner organized by SEMI Taiwan. Ma stated that for the past 20 years, the semiconductor industry has been an “economic bellwether for Taiwan, and a global powerhouse that has inspired tremendous pride for Taiwan.” The combined efforts of industry and government have built Taiwan into the world's second largest manufacturer of computer and electronics hardware, with over 70 percent share of global markets in semiconductor, optoelectronic, and ICT products.
The output of Taiwan's semiconductor industry is still expected to remain steady at about NT$ 1.62 trillion this year and is expected to reach more than NT$ 2 trillion in 2015. The annual growth of Taiwan semiconductor industry is expected to outstrip the global semiconductor market growth to reach 6 percent this year. In addition to semiconductor industry, the Taiwanese LED manufacturing capacity accounts for 25 percent of the global total.
Taiwan’s Investment Climate and Collaboration with the Semiconductor Industry
Ma emphasized that the impressive technologies and supply capacity built up by Taiwan's semiconductor manufacturers over a period of many years makes Taiwan ideal partners for foreign firms. In addition, an important and very tightly knit cooperative partnership has arisen between Taiwan's semiconductor industry and international semiconductor equipment and materials makers. For several years in a row, Taiwan's semiconductor manufacturers have topped the world in the amount of their equipment investments and material purchases.
On the other hand, Ma stated that Taiwan's semiconductor industry has a number of unique competitive advantages: a fully developed supply chain, superior R&D capability, outstanding human resources, and a government that is moving aggressively to create a high-quality investment environment to attract key international semiconductor makers to Taiwan.
Four of the world's five biggest semiconductor equipment makers have set up operations at science parks in Tainan, Hsinchu, and Linkou. Applied Materials of the United States, for example, has established the Tainan Manufacturing Center. Lam Research of the U.S. has an Advanced Global Training Center in Hsinchu. ASML of the Netherlands has an ASML Center of Excellence in Linkou. And Tokyo Electron Limited has an R&D and assembly operation in Hsinchu. Other noteworthy developments include the establishment of an R&D center by IMEC of Belgium, and plans by ASML to develop next-generation exposure equipment technology here in Taiwan.
According to Ma, Taiwan’s location makes it an ideal for international corporations to establish their headquarters in Asia Pacific region. As the hub that connects Europe, the U.S., Japan and the emerging Asian markets, Taiwan has high economic and strategic value. Since the cross-strait relations have normalized and trade between the two sides continues to grow, Ma stated that Taiwan is an excellent choice for enterprises to enter into the Chinese market and to further expand their business in the world.
Ma encouraged multinational corporations “to collaborate with local Taiwanese firms, bolstering R&D operations in Taiwan, stepping up technical and training cooperation so that Taiwan can establish itself as a regional R&D center within the Asia Pacific region.” SEMICON Taiwan organizers invited Toshiba, Panasonic and Siltronic to Taiwan on purchasing missions, and Ma stated his gratitude to these leading international manufacturers for their support, and called on other manufacturers to invest in Taiwan and source products there.
Green: Another Highlight of SEMICON Taiwan
Ma stated his concern that global warming and the energy crisis are “among the biggest problems facing mankind in the 21st century,” which is why governments all over the world are promoting the development of green energy and green manufacturing to reduce carbon emissions. He recognized SEMICON Taiwan this year for adding an LED Taiwan Pavilion, a Green Manufacturing Gallery, and a series of international forums — all focusing on LED and green manufacturing.
Taiwan's government launched a "Dawning Green Energy Industry Program," which provides support for the development of seven green energy industries, including LED lighting and solar power. By the year 2015, Ma expects that the output of Taiwan's green energy industry to reach NT$ 1.15 trillion, making this the latest addition to the list of "trillion dollar industries" in Taiwan.
In recent years, innovative new semiconductor technologies have driven the development of new energy-saving products, such as LED lighting and solar batteries. Ma stated that these breakthroughs demonstrate that semiconductors have tremendous potential for new applications — and that rapidly growing base of middle-class consumers in the world's emerging economies will drive business opportunity for high-quality, low-cost products.
According to Ma, the activities and discussions at SEMICON Taiwan help deepen connections and strengthen cooperation between Taiwan's semiconductor firms and their overseas counterparts — keeping us more aware of future developments and business opportunities in the global marketplace.
September 17, 2012