Tougher US ban may alter China IC manufacturing ecosystem, says TSMC chair

Monica Chen, Hsinchu; Eifeh Strom, DIGITIMES Asia 0

Credit: TSIA

Tougher semiconductor-related export bans by the US may impact China's IC manufacturing ecosystem in the future, said Mark Liu, chairman of TSMC.

During a Taiwan Semiconductor Industry Association (TSIA) member meeting held on March 30, Liu pointed out that Taiwan has the potential to further synergies in the semiconductor industry with its robust electronics, machine tools, machinery, and plastic-related industries.

Liu said the Taiwanese government should seize the opportunity to build a semiconductor ecosystem that leads industry upgrades so that Taiwan's semiconductor industry can continue to be a pioneer of Taiwan's economic development.

Taiwan's semiconductor industry performed well in 2022, despite a number of global uncertainties, with output value reaching NT$4.8 trillion for an on-year growth of 18.5%.

Output value from Taiwan's wafer foundry manufacturing and packaging and testing industry ranked first in the world. Overall industry output value and design industry output value ranked second globally.

Taiwan's IC manufacturing grew 31% on year to NT$2.92 trillion (US$98 billion). Wafer foundries reached NT$2.68 trillion (US$90.1 billion) and saw 38.3% on-year growth, while memory and other manufacturing slid 18.2% on year to NT$2.36 trillion (US$7.8 billion).

Taiwan's IC design industry output value grew 1.4% on year to NT$1.23 trillion (US$41.3 billion). The IC packaging industry reached NT$466 billion (US$15.6 billion) for an on-year growth of 7% and the IC testing industry fell 2.3% on year down to NT$218.7 billion (US$7.3 billion).

TSIA has been entrusted by Taiwanese President Tsai Ing-Wen to form the President's Council of Advisors on Semiconductors (PCAS), which recently put forth a letter to the president regarding Taiwan's semiconductor industry.

The letter proposed specific actions the government could take regarding six key issues: the global state of affairs, industry strategy, R&D innovation, green manufacturing, breeding talent, and labor force development.