Page 4 - Semiconductors

Policy Initiatives —

Semiconductor Industry

Development Program

The semiconductor industry cluster in Taiwan plays a leading international
role as it is ranked first in the world by market share in both the foundry industry
and the packaging & testing industry. In the IC design industry, it is ranked
second. 2022 will be a turning point for the Taiwan semiconductor industry as it
is the year which next-generation Edge AI products based on 3nm technology
begin to mass produce.

The current semiconductor policy of Taiwan calls for the development
of smart chips in combination with artificial intelligence (AI) applications
to establish the critical technologies needed by industry for smart system
applications. The government has already prioritized "IC design and pioneering
semiconductor technologies" in its technology policy. Taiwan's strengths in
the semiconductor industry will continue to be leveraged in support of the 5+2
Industrial Innovation Plan.

The Ministry of Economic Affairs (MOEA) launched the "Chip Design and
Semiconductor Technology Development and Application Plan" in 2018 based
on the findings of the 2017 "Strategic Review Board Meeting for the Smart
System and Chip Industry" conducted by the Executive Yuan. Under the plan,
Taiwan will build an integrated industry chain for Internet-of-Things (IoT) and
AI, including chips, sub-systems, and prototype products. An eco-system for
IoT and AI industry innovation will be created to maintain and strengthen the
advantages enjoyed by Taiwan's semiconductor industry. Key tasks planned for
2020 include the AI on Chip Program for Intelligent Devices, the 5G+ System
and Application Advancement Project, Technology Development of PV Module
Redesign for High-performance, Easy-disassembly, and High-Value Circulation
Project, the Hybrid Operating Room System for Intelligent Hospitals, and
the Development Project for Application of AI Systems to Intelligent Robots
and Manufacturing. The projects will hopefully energize the development of
industries related to wireless communications, artificial intelligence, smart
manufacturing, smart medical devices, and the circular economy.

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