- The next website linking is only available in Chinese.
- If you have any questions, please dial +886-2-2311-2031.
Continue to the website.
2024-02-29
Japan’s Semiconductor Equipment Industry Policies and Guidelines
I. Introduction Japan actively developed its semiconductor industry in the 1970s, creating a complete industrial chain with outstanding performance in manufacturing, materials, equipment, and terminal products. At one point, Japanese semiconductors exceeded 50% global market share. But since the U.S.-Japan Semiconductor Agreement of 1986, Japan's market position has gradually fallen behind Taiwan and South Korea, with the current global market share sitting at less than 10%. In recent years however, Japan has been actively developing its semiconductor industry chain. Measures include encouraging foreign investments from companies like TSMC and Micron, as well as establishing Rapidus, which aims to mass-produce the most advanced logic chips smaller than 2 nanometers by 2027, to expand the global market share of Japanese chips to 20% by 2030. While Japan may still need to catch up in logic IC manufacturing, it is still the world leader in semiconductor materials and equipment, representing about 50% and 30% of the global market respectively. II. Japan’s world-leading semiconductor equipment industry The global semiconductor equipment market is primarily dominated by the United States, Japan, and the Netherlands. Among the top 10 equipment manufacturers, the United States accounts for about half of the market share, followed by Japan and the Netherlands, accounting for 30% and 20% respectively. Japan exports most of the semiconductor equipment it manufactures. In 2022 alone, Japan had US$8.35 billion in domestic demand for equipment, accounting for 7.8% of the global market. However, equipment exports were significantly higher, amounting to 4.3 trillion JPY (approx. US$28.5 billion), with about 23.8% (approx. US$6.78 billion) exported to Taiwan. Semiconductor production equipment constitutes the majority of Japan's semiconductor equipment exports, accounting for nearly 60% of total exports, followed by components at about 20%. In terms of manufacturers, Japan's largest semiconductor equipment manufacturer is TEL (Tokyo Electron), also the third-largest equipment manufacturer in the world. Other Japanese manufacturers in the top ten worldwide include Advantest, SCREEN, and Hitachi High-Tech. In the equipment category, Japanese coating/developing equipment (mainly TEL) accounts for more than 80% of the global market. Additionally, Japanese DUV (deep ultraviolet) photolithography machines, vertical CVD (chemical vapor deposition) and oxidation diffusion equipment, sputtering equipment, CMP (chemical-mechanical polishing) equipment and factory handling equipment also occupy important position in the industry. Ⅲ. The future layout of Japan’s semiconductor equipment industry The COVID-19 pandemic has underscored the importance of digital transformation. Japan's Ministry of Economy, Trade and Industry released its first Strategy for Semiconductors and the Digital Industry in March 2021. This strategy highlights the urgent need for advancements in semiconductor technology, manufacturing, and digital infrastructure, aiming to address the technological requirements for future trade and economic security. It sets a goal for Japanese semiconductor companies to increase their revenue from 5 trillion JPY in 2020 to 15 trillion JPY by 2030, ensuring a stable domestic supply of semiconductors. The strategy focuses on five areas: advanced logic ICs, advanced memory, industrial use semiconductors, advanced packaging, and manufacturing equipment and components/materials. It is estimated that by 2030, the public and private sector investments in advanced semiconductors and their supply chains will exceed 5 trillion JPY. Additionally, Japan aims to strengthen its domestic semiconductor equipment manufacturing supply chain and develop equipment for of next-generation technology, including advanced and green manufacturing equipment. The Economic Security Promotion Act also guarantees subsidies for operators whose equipment investment exceeds 30 billion JPY, which will enhance supply chain resilience and domestic manufacturing capabilities. To improve its self-sufficiency in advanced semiconductor manufacturing, Japan has initiated infrastructure projects in various prefectures, including a TSMC’s logic IC factory in Kumamoto, a Flash-3D NAND factory in Mie Prefecture (a joint venture between Kioxia and Western Digital), and a Micron’s 1β generation DRAM factory in Hiroshima Prefecture. Notably, TSMC’s Kumamoto fab, with an investment of US$8.6 billion, is a key development in advancing industrial-use semiconductors in the Kyushu region. This initiative is expected to generate 4.3 trillion JPY in economic benefits for the area over the next decade and has spurred other companies to establish factories in Kumamoto. Furthermore, since the establishment of JASM at the end of 2021, at least 46 semiconductor-related manufacturers to make new investments in the Kyushu region, promoting local economic development and enhancing Japan's competitive position in advanced semiconductor manufacturing. In recent years, Japan has actively collaborated with governments and enterprises from various countries to enhance the resilience of its semiconductor supply chain and bridge the gap in advanced technology fields. The Japan-U.S. Summit Meeting of 2022 established the Basic Principles on Semiconductor Cooperation, wherein the two nations committed to jointly bolstering supply chain resilience within the free trade market and supporting each other in addressing shortfalls in semiconductor manufacturing, manpower, technology and semiconductors. Japan has also formed a semiconductor partnership with the United Kingdom and held an Exchange of Views with senior executives of global semiconductor companies. Additionally, Japan's Ministry of Economy, Trade and Industry announced the resumption of semiconductor material exports to South Korea, ending a trade dispute that lasted three years and nine months. Despite these developments, Japanese semiconductor equipment manufacturers remain cautious above moving production capacity overseas, mainly due to considerations of geographical location and preventing technology outflow. In line with the New Export Controls on Semiconductor Equipment announced in March 2023, Japan, similar to the US, will impose controls on semiconductor equipment that may be diverted for military purposes. However, countries on Japan's list of friendly countries, including the United States, Taiwan, South Korea, and Singapore, are exempt from this restriction. Ⅳ. Complementary strengths: Taiwan and Japan working together to build up supply chain resilience Post COVID-19, Japan and other countries around the world are actively developing their local supply chains. Although Japan's semiconductor production capacity may have decreased from its previous heights, the country still holds a leading position globally in terms of equipment and materials. In recent years, Japan has actively cooperated with overseas companies in the semiconductor industry. However, due to concerns of national security and potential technology outflow, Japan remains selective in its partnerships. One such company, JASM, a joint venture with TSMC, which plays a crucial role in filling the gap in logic IC production capacity. From the outset of construction, it is evident that both Japan’s public and private sectors have provided full support, significantly impacting the Kumamoto region. This development has even been referred to as the “semiconductor bubble.” Both Powerchip Semiconductor Manufacturing Corporation and United Microelectronics Corporation are keen on expanding their presence in Japan. In these expansions, Taiwan will contribute its semiconductor manufacturing experience and technology, while Japan will provide the manpower, subsidies, and local resources to increase semiconductor production capacity. This collabortion will also serve as a valuable foundation of experience for Taiwanese companies looking to establish factories in other countries. Furthermore, Taiwan and Japan share some common issues, such as an aging population with a low birthrate, human resource shortages, and the goal of achieving net-zero carbon emissions in the semiconductor supply chain. Other areas, such as digital transformation, automation, and environmental protection, present opportunities for joint exploration and resolution. As a result, Taiwan and Japan can be expected to cooperate more closely in the semiconductor industry in the future.
2023-11-29
Taiwan and France Jointly Announce the Signing of a Science and Technology Cooperation Convention with Future Coopera-tion Focusing on Six Key Areas
On November 29, the National Science and Technology Council (NSTC) jointly held a press conference with the French Office in Taipei. During the conference, co-hosts NSTC Minister Tsung-Tsong Wu and French Office in Taipei Director Franck Paris, announced that Taiwan and France had recently signed a Science and Tech-nology Cooperation Convention (STC). By focusing on six key areas, this STC aims to lift Taiwan-France scientific research cooperation to new heights. During the press conference, Executive Yuan Premier Chien-Jen Chen, who was al-so in attendance, stated that Taiwan’s success and performance in scientific re-search and technology industries have started to garner international attention and acclaim. With these experiences and achievements, Taiwan looks forward to tackling the world’s toughest challenges by cooperating with like-minded coun-tries that are also free, democratic, and respect human rights. Minister Wu also stated that the NSTC has promoted S&T exchange and cooperation with ministry-level agencies in Taiwan’s partner countries over the past three years. To date, Taiwan has signed science and technology cooperation agreements with three technology powerhouses: the US, Germany, and France. Based on the country’s emphasis on technological development, Taiwan will also sign S&T agreements with other countries in the future. These agreements will continue to strengthen the global importance and influence of Taiwan’s scientific research and S&T indus-tries. Following Premier Chen and Minister Wu’s remarks, French Office in Taipei Direc-tor Paris stated that Taiwan’s S&T strength and industrial development have gar-nered attention across the world. Director Paris also stated that France has en-joyed remarkable development in many S&T sectors, and that by signing this STC, Taiwan and France will be able to establish more comprehensive S&T cooperation in the future. During the press conference, Diplomatic Representative in France François Wu Chih-Chung delivered remarks via video. Representative Wu affirmed the importance and impact of Taiwan’s scientific research strength in supporting diplomatic efforts. In addition, Representative Wu stated that he hopes the Tai-wan-France S&T partnership can enjoy more cooperation and develop further in the future. This STC is the result of NSTC Minister Wu’s visit to France in 2022. Following a year of hard work and discussion with France, Representative Wu and Director Paris signed the STC on November 23 in Paris. Minister Wu was also in attendance to personally witness the signing process. The STC will focus cooperation in six key areas, which include semiconductors and quantum, healthcare, marine technolo-gy, cybersecurity and AI, green industries, energy and net-zero, and space tech-nology. During his recent visit to France, Minister Wu also met with Minister of Higher Ed-ucation and Research Sylvie Retailleau to discuss specific cooperation plans and strategies that will launch after the signing of the STC. Both Minister Wu and Retal-lieau aim to initiate new bilateral cooperation as soon as possible. According to ini-tial plans, a Taiwan-France Science and Technology Meeting, which will focus on dialogues regarding S&T policy and academic research, is scheduled to take place in early May 2024 in Taiwan. Media Contact: Kai-Shyr Wang Section Chief Department of International Cooperation and Science Education National Science and Technology Council Tel: +886-2-2737-7810 kswang@nstc.gov.tw
2023-11-02
Taiwan to secure tech advantage with NT$300 billion chip innovation program
At Thursday's weekly Cabinet meeting, Premier Chen Chien-jen received a briefing from the National Science and Technology Council on the Taiwan Chip-based Industrial Innovation Program. The premier said that the program aims to create new prospects for Taiwan's tech industry and will lay the foundations for the nation's technological strength over the next 10 to 20 years. Taiwan's strengths in the field of semiconductors are universally recognized around the world, the premier said. To meet the opportunities and challenges posed by future technological transformations and capitalize on Taiwan's leading position, the government is taking preemptive action today to lay the groundwork for the tech industry of tomorrow. To this end, the government plans to allocate NT$12 billion (US$369.4 million) to the science and technology budget in 2024, and a total of NT$300 billion (US$9.2 billion) for the program's implementation over the next 10 years (2024 to 2033). Premier Chen said the program will focus on four main strategies: combining generative artificial intelligence with integrated circuit technology to advance breakthrough industrial innovation; improving the environment for domestic talent cultivation and welcoming international R&D personnel; accelerating development of the heterogeneous integration processes and advanced technology necessary for industrial innovation; and utilizing Taiwan's strengths as "Silicon Island" to attract international startups and investment. The premier said the present moment is a golden opportunity for international collaboration. Taiwan should take advantage of its dominance in the semiconductor industry ecosystem to pave the way for the nation's future science and technology industries and fortify its industrial capacity for breakthrough innovation.
2023-08-30
Countries Worldwide Strengthen Semiconductor Supply Chain Resilience Major Equipment Manufacturers Continue to Expand in Taiwan
The COVID-19 pandemic has created a high demand for semiconductors since 2020. However, as East Asia produces the majority of semiconductors, and the flow of people and goods were hindered during the pandemic, the world was hit with a semiconductor shortage. In response, the term 'chip shortage' was created to describe the insufficient supply of semiconductors during the pandemic. Countries around the world began to recognize the importance of semiconductors. Currently, major global semiconductor manufacturers are actively expanding production and ramping up investments in countries with robust manufacturing capacities, such as Taiwan, South Korea, Singapore, and Malaysia to increase nearby supply production and strengthen the resilience of semiconductor supply chains. The pandemic has subsided, but trade tensions between China and the US have risen. In the past three years, China has become the world's largest market for semiconductor equipment. As such, manufacturers are swiftly adjusting supply chain strategies to mitigate the impact on revenues. In recent years, emerging terminal applications (e.g., high-performance computing (HPC), 5G, and automotive electronics) and remote learning during the pandemic has driven major semiconductor manufacturers to expand production. As such, the global market for semiconductor equipment has experienced positive growth for three consecutive years, reaching US$107.65 billion in 2022—a new record. Major semiconductor suppliers are concentrated in the United States, the Netherlands, and Japan, while 80% of the equipment market is located in East Asia. An examination of global semiconductor equipment market share in 2022 reveals that China accounted for 26.3%, Taiwan for 24.9%, South Korea for 20%, and Japan for 7.8%. For greater geographical proximity to customers, major players like Applied Materials, Lam Research, and ASML have established production bases in Asia. The production bases in Asia however are mainly focused on assembly, with fewer bases engaged in manufacturing, as the purpose is to quickly replace components and reduce logistics costs. Following the pandemic, countries worldwide are beginning to recognize semiconductors as a strategic resource and actively strengthening semiconductor self-sufficiency. In particular, the U.S. recently announced an amendment to widen the scope of subsidies for the CHIPS and Science Act (CHIPS Act) to include semiconductor equipment and chemical materials in the upstream supply chain. The aim is to incentivize semiconductor manufacturers to invest in the U.S. and promote development of the local semiconductor industry. The symbolic move by the U.S. government positions semiconductors as a strategic resource, highlighting how it has become the lifeblood of global economy and security. Equipment manufacturers have subsequently readjusted their strategies in response to the global trend of shortening supply chains. Because the semiconductor industry has higher technological and funding thresholds, the market has been dominated by a small number of industry-leading enterprises for a long time, including ASML, Lam Research, and Tokyo Electron. A summary of their strategies adopted in different scenarios is as follows: ASML: In recent years, ASML has been actively expanding operations in Asia, investing approximately US$180 million to establish technology bases and training centers in Hwaseong, Korea. Additionally, observations have also been conducted in Vietnam, Singapore, and Malaysia. In 2023, ASML invested approximately NT$30 billion in Taiwan for R&D and manufacturing of 2-nanometer wafer optical measurement equipment. An estimated 2,000 employees will be stationed in Zone 1, Linkou Industrial Zone, New Taipei City, further strengthening Taiwan’s high-end semiconductor processing supply chain. Lam Research: Lam Research has established an 800,000 square feet manufacturing base in Malaysia – its main operation center in Asia. Furthermore, Lam’s equipment and components supply chains established in Taiwan is deepening collaboration with Taiwanese manufacturers. Lam Research has also established an R&D center and continually increased R&D investments to strengthen advanced processing technology services for customers, enhance the scale of its supply chain in Taiwan, achieve mass production of 2-nanometer processes, and promote local development of key processing technologies. Tokyo Electron: Tokyo Electron (TEL) maintains a primary production base in Japan and continues to expand factory capacities to meet market demand. Additional manufacturing centers have been established in Asia, including Taiwan and Malaysia, and TEL is planning to continue expansion. In 2022, TEL invested NT$1.8 billion in Tainan to establish a manufacturing and maintenance hub for critical components of semiconductor equipment; furthermore, the company has bolstered the development of semiconductor clusters in southern Taiwan by collaborating with local supply chains. Taiwan has excellent professional knowledge in semiconductors, advanced manufacturing capabilities, and comprehensive industry clusters. As such, Taiwan has positioned as the developmental linchpin in the global semiconductor industry. Despite the challenges, major semiconductor equipment manufacturers are still coming to Taiwan and establishing manufacturing and R&D capabilities. This will in turn, continue to strengthen Taiwan’s semiconductor ecosystem by integrating local manufacturing power.
2018-11-05
Replenish 5+2 Industrial Innovation Competitiveness to Attract Real Investment. MOEA’s Taiwan and Europe Bilateral Investment Technology Cooperation Delegation Achieved Great Results.
Wang Mei-Hua, Vice Minister of Economic Affairs, led the “Taiwan-Europe Bilateral Investment Technology Cooperation Delegation" to Germany, Denmark, and the United Kingdom from October 27 to November 2 to advance industrial investment cooperation and attract investment. The delegation visited 8 key foreign companies in the optoelectronics and semiconductors, smart machinery, biotechnology and pharmaceuticals, offshore wind power and aviation industries and promoted multiple investment and technology cooperation projects. It also signed a letter of intent (LOI) for investment with the international pharmaceuticals company that ranks first in the world in innovation. The delegation was also invited to exchange opinions on Taiwan and the development of the global circular economy with the Cross-Party Group on Taiwan in the Scottish Parliament. The important achievements of the delegation are as follows: 1. Advancement of optoelectronics, semiconductors and smart manufacturing supply chain in Taiwan: The delegation visited Manz AG, the German high-tech equipment manufacturer and facilitated expansion of next-generation laser cutting and corrosion and human-machine integration technologies based on the company’s foundations for semiconductor wet process equipment manufacturing technologies in Taiwan. The investment will help Taiwan accumulate comprehensive innovation capacity in the optoelectronics and semiconductor equipment manufacturing sector. In addition, the delegation also visited the world-leading pump manufacturer and R&D company Grundfos in Denmark and encouraged the company to continue expansion in Miaoli as well as to conduct technology cooperation with domestic companies in waste water treatment and smart pumps. 2. Advancement of local development in the offshore wind power industry: The advancement of the offshore wind power industry is a key task in Taiwan’s energy transition. Taiwan has selected 7 offshore wind farm developers in the first half of this year. To continue to strengthen weaknesses in domestic production supply chain for Taiwan’s offshore wind power, the delegation focused on European firms that specialize in the production of wind turbines, marine engineering, and other advanced offshore wind power industries. It visited the Danish company MVOW and encouraged the company to establish a nacelle assembly plant or gear box manufacturing plant in Taiwan. The delegation also visited WindHoist, a British company that specializes in installation and logistics for wind turbine installation, and encouraged the company to establish a branch company in Taiwan, form a technical team with domestic suppliers, establish a personnel training center, and help cultivate technical personnel for wind turbine installation. In addition, the delegation also visited the Scottish energy conglomerate Woods Group and encouraged the company to establish a branch company in Taiwan. Woods Group shall comply with Taiwan’s domestic production policies and work with Taiwanese suppliers to expedite technology upgrade and help Taiwan set up a wind turbine industrial chain. 3. Encouraging international pharmaceuticals companies to invest in preliminary R&D of new drugs in Taiwan: The delegation visited the British biochip manufacturer Arrayjet and encouraged the company to commence technology collaboration with Taiwanese ICT and precision manufacturing industries. The delegation also visited AstraZeneca, the British pharmaceuticals manufacturer that ranked first in the world for innovation. Vice Minister Wang Mei-Hua and the company’s Vice President Ms. Rene van der Merwe represented the Ministry and AstraZeneca in signing a letter of intent (LOI) for investment. The Company has operated in Taiwan for more than 70 years. In addition to tripling its clinical research budget in Taiwan in recent years and facilitating the launch of 10 new drugs, the company also announced during the visit that it shall establish the iDream innovation center in Taiwan to cultivate innovative technologies and talents for preliminary R&D in the pharmaceuticals industry in Taiwan. It shall also use Taiwan as the company’s advancement center for the iDream project in Asia which is expected to become a pilot program for powering large international pharmaceuticals companies’ investment in preliminary drug R&D in Taiwan. Members of the delegation, whose mission was to facilitate actual investment and technical collaboration, included representatives of the Department of Investment Services, Industrial Development Bureau, Biotechnology and Pharmaceutical Industries Promotion Office, Metal Industries Research & Development Centre, Green Energy and Environment Research Laboratories of Industrial Technology Research Institute, and Biomedical Technology and Device Research Laboratories. The MOEA will continue to focus on major industries, target overseas Taiwanese and foreign key technology investors, promote investment in Taiwan, advance industry upgrading and transition, and strengthen overall economic prosperity and growth. Department of Investment Services Spokesperson: Chang Yuan-Chih, Senior Executive Officer Office Number: 02-2389-2111 ext. 812 Mobile Phone: 0937-013-690 Email address: jameschang@moea.gov.tw Contact Person: Lin Mei-Hsing, Section Chief Office Number: 02-2389-2111 ext. 212 Mobile Phone: 0988-158-298 Email address: mhlin2@moea.gov.tw
Taiwan has convenient transportation infrastructure, facilitating prompt technicla support
Taiwan is an international leader in semiconductor processes
Taiwan ranks number one globally in OEM wafer production
Taiwan continues to invest resources in R&D, enabling it to lead global semiconductor technology
Source: InvesTaiwan
Email:service@invest.org.tw / Information Window for Key Innovative Industries
Add: 10046 8F, No.1 Xiangyang Road, Taipei, Taiwan
Download
Key Innovative Industries in Taiwan - Semiconductor (7.48 MB)
About Us
InvesTaiwan InvesTaiwan Service Center Department of Investment Promotion, MOEA Department of Investment Review, MOEA Contact TaiwanPlanning
Reasons to Invest Overview Key Industries for Investment Promotion Incentives Important Policies Success StoriesJuiker App-Call Free
Let's Juiker Together