Page 6 - Semiconductors

Overview of Industrial
Development

1 Output Value

The semiconductor industry is a key pillar of economic growth in Taiwan.
It is one of Taiwan's most important industries in terms of "output value", "share
of exports," and "investment amount." In 2019, Taiwan's semiconductor industry
chain was worth NT$2.67 trillion (US$86.3 billion), making it the second largest
in the world after the U.S.
The semiconductor industry in Taiwan is characterized by vertical
integration and industry clustering. A unique production model gives Taiwan
production advantages such as flexibility, quickness, customized service, and
low costs. In terms of industry structure, the IC design industry accounts for
26%, the foundry industry accounts for 49%, the IC packaging & testing industry
accounts for 19%, and the memory industry accounts for 6%. In terms of global
market share, the foundry sector has been the most outstanding performer
with a global market share of over 70%. Taiwan Semiconductor Manufacturing
Company (TSMC) is Taiwan's best-known manufacturer and the undisputed
world leader in the foundry sector with more than half of the global market
share in 2019. Other key companies include MediaTek in the IC design sector,
Advanced Semiconductor Engineering, Inc. (ASE) in the IC packaging and
testing sector, and Nanya Technology Corp. in the memory sector.

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