2026/10/16

President Lai attends Micron Technology’s new plant in Taichung

President Lai Ching-te attended the inauguration of an advanced assembly and testing plant Oct. 15 in Taichung City, stressing that the government will continue to support high-tech research, development and manufacturing in Taiwan. The president said Micron Technology Inc., based in the U.S., has invested more than NT$1.6 trillion (US$49.59 billion) in Taiwan over the past three decades, adding that such long-term commitment reflects Micron’s confidence in Taiwan. In January of this year, Lai met with Sanjay Mehrotra, Micron’s chair, president and CEO, at the Presidential Office. He said he personally expressed appreciation to Mehrotra for placing Taiwan at the center of his company’s global expansion project. Both IC chips and memory are indispensable in a future driven by artificial intelligence, Lai said. He added that Taiwan, as home to Taiwan Semiconductor Manufacturing Co., is globally known for its advanced manufacturing, and thanks to Micron’s continuous investment, it is also known for its advanced assembly and testing technologies. The more the world needs AI, Lai said, the more it needs Taiwan as a trusted partner with complete industrial capabilities. The new plant will enhance Taiwan’s ability to assemble and test high-bandwidth memories, the president said, adding that he expected the facility to play a critical role in promoting the global economy and driving further AI development in Taiwan. In a move to promote investment, Lai said the government has extended the Three Major Programs for Investing in Taiwan to 2027 and expanded the scope to include both Taiwanese firms operating offshore and international businesses. He also said the Industrial Innovation Statute and other government projects will continue to provide incentives to global companies such as Micron to expand R&D in Taiwan and create more business opportunities for local firms in the process.  

2026/9/22

DoIT Unveils 3.2T Silicon Photonics Optical Engine at TIE More Than 20 Partners Join Forces to Capture AI Computing Opportunities

The Taiwan Innotech Expo (TIE) 2026, a premier showcase of cutting-edge innovations, opens on September 17 at the Taipei World Trade Center Exhibition Hall 1. At the Innovation Economy Pavilion, the Department of Industrial Technology (DoIT) of the Ministry of Economic Affairs (MOEA) has brought together more than 13 research institutes and industry partners to present 64 technologies. Among the featured innovations is the 3.2T Silicon Photonics (SiPh) Optical Engine Technology, developed by the Industrial Technology Research Institute (ITRI) with support from DoIT. As demand for AI computing continues to surge, the volume of data moving through data centers is also growing rapidly, pushing conventional copper interconnects toward their bandwidth limits. The challenge is comparable to growing traffic overwhelming a city's roads: adding more lanes can help only so much. A fundamentally more efficient way of moving data is needed. ITRI's 3.2T SiPh Optical Engine Technology addresses this challenge by using light rather than electrical signals to transmit data through multiple integrated high-speed channels. It delivers a total transmission capacity of 3.2 Tbps, or approximately 400 GB per second-twice the capacity of the previous 1.6T generation and equivalent to the data volume of about 20 4K movies. Light-based transmission also reduces signal loss and heat generation compared with conventional copper interconnects. To accelerate commercialization, ITRI has assembled a network of more than 20 supply chain partners spanning chip design, fabrication, testing, and packaging. ITRI has also collaborated with international companies to advance specifications for 3.2T technology. These efforts are strengthening Taiwan's competitiveness in the global AI optical communications supply chain. DoIT-supported innovation is also addressing pressing healthcare needs. Taiwan has nearly 97,000 dialysis patients and one of the world's highest dialysis rates relative to population. Among the various uremic toxins, middle-to-large-molecule toxins are known to be closely associated with chronic inflammation, cardiovascular disease, and other health risks. Conventional testing requires blood samples to be collected before and after dialysis and sent to a laboratory for analysis. Results take three hours and often become available only after the treatment session has ended, limiting physicians' ability to make timely adjustments. To address this problem, ITRI has developed DiaTrack, a middle-to-large-molecule uremic toxin detection technology, also with support from DoIT. DiaTrack connects directly to the effluent port of a dialysis machine and analyzes toxin types and concentrations every 15 minutes. This gives physicians timely insight into toxin clearance while treatment is underway and provides data to support personalized adjustments to dialysis settings, shifting dialysis quality assessment from post-treatment evaluation to in-treatment monitoring. The technology has completed proof-of-concept testing in collaboration with National Cheng Kung University Hospital. The collaborative work received a National Innovation Award, and a pilot deployment at the hospital is planned for the fourth quarter of 2026. Contacts Contact Person: Office of Marketing Communications, ITRI Ms. Chen Jou-An Phone: +886-3-5916378 E-MAIL: annc@itri.org.tw  

2026/9/14

MOEA Teams Up with Global Partners to Build New Semiconductor Landscape for AI Era

The Ministry of Economic Affairs (MOEA) held the “2026 Semicon Network Summit” on September 1, bringing together government officials, industry leaders, researchers, and academics from 38 countries to discuss the future of semiconductors in the age of AI. President Lai Ching-te attended the Summit, underscoring Taiwan's commitment to international cooperation and technological innovation. Building on the global semiconductor partnership network that was established during the last summit, this year's summit focused on opportunities and challenges arising from the rapid growth of AI. Discussions centered on advanced technologies, cross-sector applications, and deeper international supply chain collaboration in order to shape the next phase of global semiconductor development. Minister of Economic Affairs Kung Ming-Hsin highlighted four key themes, including advanced semiconductor technologies and materials, international cooperation on silicon photonics, AI-driven robotics and chip innovation, and cybersecurity resilience in the semiconductor industry. Minister Kung emphasized that these areas are critical to the future competitiveness and stability of both the semiconductor and AI sectors. The Minister also expressed the importance of AI adoption among Taiwan's small and medium-sized enterprises (SMEs). With approximately 1.71 million SMEs accounting for 98% of all businesses and employing around 80% of the workforce in Taiwan, expanding AI capabilities within this sector is seen as essential for Taiwan's long-term economic growth. The MOEA will thus continue promoting policies that support President Lai's goal of enabling one million Taiwanese SMEs to adopt AI technologies. In prerecorded video remarks, U.S. Under Secretary of State Jacob Helberg called on partner economies to keep investing and building strong and resilient connections. The United States and Taiwan are partners in safeguarding technological security that will shape developments throughout this century. Additionally, SEMI President and CEO Ajit Manocha emphasized Taiwan's key role in the global semiconductor ecosystem and the importance of international collaboration in strengthening supply chain resilience and industry growth. A highlight of the summit was President Lai's presentation of Medals of Economic Contribution to Doris Hsu, chairperson of GlobalWafers, and Sanjay Mehrotra, chairman, president, and CEO of Micron Technology. The medals honored their longstanding contributions to the semiconductor industry, Taiwan's industrial development, and global semiconductor cooperation. Held under the theme "Trust, Resilience and Prosperity," the summit featured participation from high-level representatives of the United States, Japan, the EU, Poland, Israel, and other international partners. Discussions focused on strengthening trusted semiconductor networks, advancing next-generation technologies, and expanding cooperation in the AI era. The MOEA will continue working closely with like-minded partners around the world to advance sustainable growth and unlock new opportunities in both the semiconductor and AI industries.  

2026/9/10

Taiwan commits major funding to semiconductor facilities, chip design software

At the Cabinet's weekly meeting Thursday, Premier Cho Jung-tai received a National Science and Technology Council (NSTC) report on the establishment of core semiconductor facilities across Taiwan and the development of cutting-edge chip design software. The premier said the government plans to invest NT$300 billion (approximately US$9.5 billion) in semiconductors through 2033, combining hardware and software upgrades to further reinforce Taiwan's key position in global democratic supply chains. The premier said Taiwan has a world-leading semiconductor industry ecosystem, but must continue investing in R&D for future-oriented technologies and the cultivation of high-level talent to sustain the industry's competitive edge. The government is therefore actively helping domestic companies forge international connections; promoting next-generation chip design and applications of advanced manufacturing processes; and facilitating R&D in key technologies such as silicon photonics, quantum technologies and unmanned vehicles. Premier Cho noted that the NSTC's Taiwan Chip-based Industrial Innovation Program addresses hardware development through its nationwide establishment of core semiconductor facilities, and software development through its advancement of cutting-edge chip design software. The program upgrades core infrastructure at domestic academic and research institutes; accelerates R&D and deployment of key technologies; strengthens talent development; expands support services for startups; creates state-of-the-art process validation environments and pilot production lines for advanced semiconductor technologies; and spurs industrial innovation through equipment sharing and process integration. Furthermore, in the area of electronic design automation (EDA), the program bolsters the nation's capacity for independent development, advances next-generation EDA tools and key EDA technologies for heterogeneous integration and advanced packaging, and creates a platform for Taiwan's semiconductor EDA supply chain.

2025/12/26

Development of the Semiconductor Industry and Taiwan’s Strategic Position in the Era of AI

In 2025, the global semiconductor market—driven by Artificial Intelligence (AI), High-Performance Computing (HPC), automotive electronics, and demand for high-speed communications—has fueled technology growth worldwide. A market once dominated by computing, memory, and communications is undergoing rapidly transformation due to Large Language Models (LLMs), the expansion of data centers, and the popularization of electric vehicles (EVs). This shift has fueled surging demand for high-end Graphics Processing Units (GPUs), AI accelerators, High Bandwidth Memory (HBM), and advanced packaging. The World Semiconductor Trade Statistics (WSTS) predicts that the global semiconductor market will reach USD 760.7 billion in 2026, with an annual growth rate of 8.5%, hitting a record high. Meanwhile, Semiconductor Equipment and Materials International (SEMI) forecasts global semiconductor manufacturing equipment sales to reach USD 138.1 billion in 2026. This reflects a broad expansion across the entire value chain—from upstream equipment suppliers to downstream chip manufacturers—and underscores that the industry’s growth momentum is increasingly driven by AI computing and the rapidly rising demand for data centers. Global Semiconductor Industry Development Trends The demand for training large-scale AI models has risen rapidly, making high-performance GPUs, AI server processors, and advanced packaging the focus of global technological development. US companies NVIDIA and AMD are launching new-generation AI accelerators and relying on global supply chains to expedite the buildout of High Bandwidth Memory (HBM) and advanced packaging capacity. As data centers continue to scale, the need for high-speed data transmission has grown sharply. The adoption of Co-Packaged Optics (CPO) and silicon photonics accelerated in 2025, with US companies including Intel, Broadcom, Cisco, Marvell, and NVIDIA, viewing optoelectronic integration as a critical strategy to increase bandwidth and reduce power consumption. The memory market has also re-emerged as a key driver of growth, as HBM delivers significant improvements in capacity and bandwidth. Micron in the United States, along with Korea’s SK Hynix and Samsung, have all ramped up related investments. In automotive electronics, demand for Microcontroller Units (MCUs), Insulated Gate Bipolar Transistors (IGBTs), silicon carbide MOSFETs (SiC MOSFETs), and in-vehicle sensors continues to climb, fueled by the growth of Advanced Driver Assistance Systems (ADAS) and electric vehicles. Power semiconductors and in-vehicle computing platforms are seeing expanding applications as vehicle electrification and intelligence advance. As a result, both the volume and complexity of automotive chips are rising year by year, forming a strong and sustained source of momentum for the sector. Simultaneously, geopolitics continuously reshape the pattern of supply chain. The USA, EU, and Japan have extended subsidy policies aimed at promoting localization and diversifying risk, leading to a more geographically distributed global capacity layout. This trend has strengthened countries’ efforts to secure key manufacturing technologies and critical points within the semiconductor supply chain. Taiwan’s Semiconductor Industry: Advancing with Global Trends and Deepening International Collaboration Driven by rising demand for AI and HPC, Taiwan’s semiconductor supply chain is poised for accelerated expansion and cross-domain integration in 2025. As the advanced manufacturing capability and advanced packaging demand grow at the same time, the leading foundry and Outsourced Semiconductor Assembly and Test (OSAT) companies in Taiwan – TSMC, ASE Technology Holding, and Powertech Technology Inc., maintain high capacity and also lead the high-end Printed Circuit Board (PCB), heat dissipation, and server Original Design Manufacturer (OEM). The continued expansion of CoWoS (Chip on Wafer on Substrate), SoIC (System on Integrated Chips), and HBM production lines further strengthens Taiwan’s central role in the mass production of AI accelerators and data-center chips. In response to global trends in high-speed transmission and optoelectronic integration, Taiwan’s communications networking, photonics, and server supply chains are accelerating investment in CPO and silicon photonics. Taiwanese companies such as LandMark Optoelectronics and Luxnet Corporation are making significant progress in optical modules, optical engines, and high-speed transceivers, collaborating with server vendors to introduce next-generation designs. This allows Taiwan to expand beyond AI chip manufacturing to become a key supplier of high-speed transmission and optoelectronic systems. Foreign companies are also deepening their presence in Taiwan. With expansions in advanced manufacturing and packaging, major international semiconductor equipment and materials suppliers—such as Applied Materials, Lam Research, KLA, DuPont, and NITTOBO (Japan)—continue to strengthen their local engineering support, technical services, and spare-parts capabilities. According to SEMI, Taiwan is expected to remain one of the world’s largest semiconductor-equipment markets by 2026. The advancement of wafer fabrication, advanced packaging, and optoelectronic integration technologies encourages foreign firms to expand services and collaborative activities in Taiwan. Additionally, rising demand for CPO and silicon photonics has attracted foreign companies to partner with Taiwan’s supply chain in module validation, product development, as well as ramp-up mass production, which is accelerating the commercialization of next-generation optoelectronic technologies. Overall, Taiwan’s semiconductor industry in 2025 is undergoing a clear shift toward higher-value activities. AI-driven innovations are accelerating manufacturing capabilities and packaging technology, enabling high-speed transmission and the integration of optoelectronics, and prompting foreign companies to collaborate with local companies on technology. Together, these developments further reinforce Taiwan’s strategic position at the center of the global semiconductor supply chain. Conclusion The global semiconductor industry is entering a new era centered on AI, HPC, and automotive electronics. Advanced manufacturing capabilities and packaging have already become the commanding heights of global technological competition. The localization of the supply chain and risk diversification fortified reliance on a reliable manufacturing base. Taiwan continues to play an irreplaceable role in the global market with a complete supply chain, high-efficiency manufacturing, and a robust R&D foundation. Looking ahead, Taiwan retains a lead in AI chip manufacturing, advanced packaging, and specialized manufacturing capabilities, and continues to hold a key role in the global semiconductor ecosystem through cooperation with international enterprises to deepen supply chain connections.