Taiwan to Invest 10 Billion Won to Localize Semiconductor Equipment Production

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] As the global semiconductor shortage worsens, Taiwan, known as a semiconductor powerhouse, is investing 10 billion KRW at the government level to localize semiconductor equipment.

According to local media such as Liberty Times on the 4th, Taiwan's Ministry of Economic Affairs will invest 250 million TWD (approximately 9.96 billion KRW) over about two years starting this year to localize semiconductor equipment.

Reports indicate that the application items for this investment are two categories related to packaging production process equipment testing: nanometer (nm, 1 nm = one billionth of a meter) scale fabrication processes, which are difficult for research and development (R&D), and advanced package RDL fabrication processes.

This semiconductor equipment localization will proceed with the government covering 40% of the expenses and companies bearing the remaining 60%.

As a result, companies such as TSMC, the world's largest foundry, ASE, the global leader in semiconductor packaging testing, and Vanguard International Semiconductor Group, a TSMC subsidiary, are expected to verify their production lines internally and aim for local production.

A government official explained the background of this investment, saying, "Although Taiwan's semiconductor industry has excellent manufacturing capabilities, it has decided to promote localization of some equipment such as 2 nm to break away from dependence on foreign semiconductor production equipment. This is to strengthen the international competitiveness of Taiwanese companies."

Meanwhile, Taiwanese media reported that for the first time since the Biden administration took office, a forum related to Taiwan and semiconductor supply chains will be held virtually on the 5th.

On the Taiwan side, Minister Wang Mei-hua of the Ministry of Economic Affairs, as well as TSMC, MediaTek, and UMC, will participate, while officials from the U.S. Department of State and Department of Commerce will attend on the U.S. side.

This content was produced with the assistance of AI translation services.