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2     Industrial Clusters

                 Taiwan is home to the most complete semiconductor industry clusters
            and specializations in the world. Once an IC design house completes a product
            design, it can be passed to a foundry or IDM (an Integrated Device Manufacturer
            provides everything from IC design, manufacturing, packaging, testing, to final
            sale) to be produced into semi-finished wafers. After front-end testing, dicing,
            and packaging are carried out by a packaging company, a testing company then
            performs the back-end testing. Final products that pass testing are supplied to
            system vendors through sales channels to be assembled into system products
            (see Fig. 2).



                   Upstream design tool and intellectual property core

                   Memory  Microcomponent  Logic IC  Analog IC  ASIC/ASSP



              IC manufacturing equipment                IC manufacturing materials

               Wafer Foundry  Memory manufacturing  Silicon wafer  Photomask  Chemicals  Metal target



             IC packaging equipment  IC package          IC packaging material
                                         Gold   Lead     IC    Molding   Solder
                                         wire    frame  substrate  Compound  Ball
              IC testing equipment  IC test







            Source: 2019 Semiconductor Industry Yearbook, Department of Industrial Technology, Ministry of Economic Affair
             Source: 2019 Semiconductor Industry Yearbook, Department of Industrial Technology, Ministry of Economic Affair
                     Figure 2 The overall structure of Taiwan's semiconductor industry


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