Taiwan

As the world enters a new era of deep tech innovation, fields such as AI chips, Advanced Computing, Autonomous Vehicles, Smart Manufacturing, and MedTech have become strategic priorities for global investors and corporate venture capital (CVC). This momentum has accelerated collaboration between startups and the semiconductor supply chain, transforming innovative ideas into scalable market solutions.As part of its effort to foster global startup engagement, SEMI connects global innovators through two key platforms — the Silicon Startups Zone and the IC Taiwan Grand Challenge (ICTGC) — to accelerate innovation across the semiconductor ecosystem.Silicon Startups Zone: A Global Stage for Semiconductor Innovation The Silicon Startups Zone serves as a gateway for global startups and investors exploring opportunities in semiconductor innovation. Launched at SEMICON Taiwan 2025, the Silicon Startups Zone is organized by SEMI with support from the National Science and Technology Council (NSTC). It features over 20 startup teams from Taiwan and around the world, showcasing advancements in AI chips, advanced packaging, EDA tools, and sustainable solutions.Through UPNext Stage presentations and live technology showcases, startups engage directly with investors, chip designers, and technology providers. SEMICON Taiwan attracts over 100,000 industry professionals, fostering new partnerships, investment discussions, and collaborations — reinforcing Taiwan’s pivotal role in connecting global innovation with the semiconductor supply chain. The Silicon Startups Zone is more than just an exhibit space — it is a starting point for collaboration and commercialization. By leveraging SEMI’s global network and Taiwan’s world-class manufacturing ecosystem, the platform accelerates startup growth and builds a sustainable pathway for next-generation innovation.The 2026 Silicon Startups Zone welcomes qualified startups to participate, offering a dedicated showcase area, UPNext Stage speaking opportunities, and exclusive marketing and media exposure. For more details, please contact Sophie Chen at [email protected] Taiwan Grand Challenge (ICTGC): Precision Scouting for Global Deep Tech Collaboration Organized by the NSTC and promoted by SEMI, the IC Taiwan Grand Challenge (ICTGC) is a global competition focused on Deep Tech innovation — based in Taiwan and open to the world. With the theme “Prototyping to Production,” ICTGC identifies startups and innovators in five key areas: AI Chip Technology, Smart Mobility, Smart Manufacturing, MedTech, and Green Technology. The program invites global startups, research institutions, and entrepreneurial teams to apply. Selected winners receive up to US $30,000 in prize funding, along with technical mentorship and access to semiconductor manufacturing resources, including EDA tools, wafer fabrication, and packaging technologies. The 2026 Call for Proposals are open now through February 28, 2026. More than a competition, ICTGC serves as a platform for collaboration — connecting the semiconductor supply chain, academia, and venture partners to help startups accelerate development and market entry. For more details on the call proposals, please contact Sophie Chen at [email protected] or submit via the Google form.Two Platforms, One Mission: Connecting Innovation for the Future Together, the Silicon Startups Zone and IC Taiwan Grand Challenge (ICTGC) create a pathway for Deep Tech startups — from discovery to collaboration and growth. Through these initiatives, SEMI connects global innovators with the semiconductor ecosystem, driving cross-border partnerships and accelerating next-generation technologies. Please click here for more information.SEMI Contact Sophie Chen, Coordinator, Technical Projects Email: [email protected]

One of the surprising side effects that came out of the COVID-19 pandemic is the acceleration of the digital transformation of global economies, which has driven a structural shift and propelled the already mature semiconductor industry to record highs.

Vacuum pumps, pressure gauges, and vacuum valves combined make up the biggest expense on the bill of materials for semiconductor OEMs. The semiconductor industry consumed almost $2.7 billion worth of vacuum subsystems in 2020, with over 60% supplied by vendors based in Europe.

In 2020, the global semiconductor materials market expanded 5% to reach $55.3 billion in revenue to set a new industry record. The momentum in growth is expected to continue throughout 2021 despite the lingering pandemic.

The global semiconductor industry is on track to register a rare three consecutive years of record highs in fab equipment spending with a 16% increase in 2020 followed by forecast gains of 15.5% this year and 12% in 2022, SEMI highlighted in its quarterly World Fab Forecast report.

Despite the pandemic lock-down, demand for electronic products and services remains strong. Work-from-home, video conferencing, and remote learning are driving data center growth and laptop and tablet demand. 5G infrastructure rollout is underway and smartphone sales are returning to normal levels. Automotive sales are increasing. At the same time, the industry is experiencing acute shortages of substrates. The October 2020 fire at Unimicron’s IC package substrate plant in Taiwan exposed the serious nature of the capacity shortage for IC package substrates. Substrate makers have been reluctant to make large investments in capacity over the last few years due to the fear that demand could decline and they would have excess capacity. Relentless price pressures by customers and the resulting low margins have weakened the finances of substrate suppliers. With tight capacity, substrate prices have increased and lead times are 14 weeks or more. The most critical shortage is for flip chip ball grid array (FC-BGA) substrates. In addition to increased demand in units, applications such as servers and networking products are seeing requirements for larger body sizes and increased layer counts. Shortages will not improve very soon because it takes time to build a new plant. And equip it. Key equipment for substrate production has lead times of up to a year. SEMI and TechSearch International detailed the substrate makers and provide projections for the substrate market, trends, and a list of suppliers and their plant locations in the Global Semiconductor Packaging Materials Outlook report. The report also highlights the market and suppliers for leadframes, bonding wire, encapsulation materials, underfill, die attach, solder balls, wafer level package dielectrics, and wafer-level plating chemicals. In times of shortages the report is an important indicator of suppliers in the industry and trends. Jan Vardaman is President at TechSearch International Inc.

Back in 2012, China ranked fifth among seven regions worldwide in IC wafer capacity but surged past the Americas and Japan in 2018 and 2019 to claim the number three position (figure 1). That’s a big deal given that ICs account for the largest share of wafer capacity excluding discrete, opto, MEMS and sensors.China’s IC wafer capacity growth accelerated to tune of 14% in 2019 and 21% in 2020 and is expected to grow at least 17% this year, as we report in the latest update of the World Fab Forecast, published December 3rd by SEMI. Of all regions, Taiwan boasts the second strongest growth rate over the same period at 3% to 4%.Figure 1: Total IC installed wafer capacity for top five regions The report shows that from 2019 through the end of 2021 China will have increased wafer capacity for memory by 95%, foundry by 47% and analog by 29%. Foundry will represent the largest portion of those gains, reaching 2 million wpm (200mm equivalents). Memory will follow at about 1.5 million wpm and then analog at over 120,000 wpm.But Chinese companies aren’t pulling off this feat singlehandedly. Many international companies are contributing to the wafer capacity increases in China (figure 2). Figure 2: IC wafer capacity in China by company origin The share of capacity contributed by Chinese-owned companies and international companies has changed little since 2012, though Chinese-owned companies saw a slight dip in their slice of the pie from 60% to 57%From 2019 through 2021, Chinese-owned companies will add almost 60% capacity for foundries, the most of all sectors. Companies including SMIC, Hua Hong Semiconductor, Nexchip, XMC and Hua Li Microelectronics are driving the increases.During the same period, Chinese-owned companies will ramp up memory capacity from basically zero to 300,000 wpm. Companies such as Yangtze Memory Technology and ChangXin Memory Technologies (CXMT), also known as Innotron, are powering the quick rise with aggressive ramps of 3D NAND and DRAM capacity.Among international-owned companies, TSMC and UMC are driving the largest share of foundry growth, while Samsung, SK Hynix and Intel are powering gains in memory capacity.More information is available in the World Fab Forecast report. The report currently collects information for fab equipment and construction investment, capacities, technologies and product types for over 280 fabs and lines in China alone, including 40 facilities that either began operation in 2020 or will from 2021 through 2024.Christian G. Dieseldorff is senior principal analyst in the Industry Research and Analysis group at SEMI in Milpitas, California.

The global economy has started down a gradual path to recovery from COVID-19 in recent months as the world continues to combat the virus. Yet one sector – semiconductors – has shown impressive growth powered by a transformation hastened by the pandemic across industries ranging from education and work-from-home to healthcare.Semiconductor sales increased 12% in September to mark a second consecutive month of double-digit growth, and year-to-date semiconductor receipts as of September jumped 5.5% compared to the same period in 2019, according to SIA/WSTS.While this upward trajectory is encouraging, it pales compared to 2020 semiconductor equipment billings growth, with results from SEMI showing worldwide global chip equipment billings in September soaring to a new high of $7.6 billion this year. During the first nine months of 2020, aggregate equipment billings logged a 23.6% rise compared to the same stretch in 2019, surpassing $51 billion. Better still, the total semiconductor equipment market in 2020 is on track to beat the previous high of $64.5 billion set in 2018.Investments in China, Taiwan and Korea are fueling the chipmaking equipment spending surge. With big domestic and international fab projects in the works, China this year is projected to become the world’s largest capital equipment market for the first time, surpassing Taiwan, which will follow at a close second. Korea will rank third in equipment investments. Taiwan and Korea growth will come on the strength of equipment spending for manufacturing leading-edge semiconductors.Equipment billings in North America and Europe declined year-over-year as the automotive and industrial sectors suffered the heaviest blows from COVID-19. Investment momentum in both regions is expected to pick up in 2021 after automotive production recovers to pre-pandemic levels while factory automation will boost industrial demand.For more information about monthly equipment billing trends by region and equipment segment, please see the SEMI Equipment Market Data Subscription.Clark Tseng is director of Industry Research and Statistics at SEMI.

Included in this outlook is a discussion of the financial impact of the current pandemic and a forecast for GDP growth by major region for 2020 and 2021.

Plunging stock prices and Coronavirus-driven business shutdowns presently dominate the news. Current economic data, including the recently released February Global Purchasing Manager Index, support earlier negative predictions of an imminent industry decline.