Page 11 - Semiconductors

It is hoped that foreign companies can form technical partnerships
with Taiwanese businesses to accelerate the development and application of
semiconductor industries, and work together to build a new future for Taiwan's
semiconductor industry.

Exploring the growing market for
2
semiconductor equipment and materials

Due to its large number of foundries and packaging plants, Taiwan has
been the largest consumer of semiconductor materials in the world for 10
consecutive years. Total market value reached US$11.3 billion in 2019, which
put Taiwan ahead of Korea and China. As the output value of Taiwan's IC
industry continues to grow, the demand for new materials and equipment will
continue to increase as well.

Specific business opportunities in semiconductor materials: The high-
performance photoresists, metal target materials, coating agents, and specialty
reactive gases used in IC production processes as well as wire bonding,
molding, and filling materials used in IC packaging by Taiwan are currently all
imported from overseas. IC companies are hoping international vendors can
produce those materials in Taiwan instead to reduce the supply risk. In addition,
5nm and 7nm IC production processes have now entered mass production in
Taiwan while a 3nm process is now under active development, as well. Greater
cooperation with foreign vendors on high-performance IC production and
packaging materials is therefore desired.

In terms of investment in semiconductor equipment, Taiwan will remain
the world's largest market due to investments by semiconductor vendors such
as TSMC, Winbond, and Micron. Total financing demand is expected to exceed
US$15 billion. Taiwanese vendors are now capable of supplying equipment for
conventional packaging processes and components for some wafer production
equipment. Nevertheless, they hope to cooperate with international upstream
equipment vendors on advanced packaging equipment and equipment for
12" wafer processes and work together in the future. Foreign vendors in the
following areas are therefore welcome to invest in Taiwan:

09