Taiwan’s Role in the Global Semiconductor Industry
Taiwan has emerged as a key player in the global semiconductor industry, with its strong foothold in the AI chip revolution. Sherman Lin, the chairman and CEO of the Taiwan Stock Exchange Corporation, recently spoke exclusively to CNBC about the country’s significant contributions to the semiconductor market.
According to Lin, Taiwan’s stock market has seen impressive gains in recent months, thanks to the high demand for high-end chips and the robust server supply chain. The Taiex index has surged by 27.93% over the past year, largely driven by the AI revolution and Taiwan’s dominance in the semiconductor sector.
One of the primary reasons for Taiwan’s success in the semiconductor industry is Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker. TSMC produces advanced processors for tech giants like Apple and Nvidia, making it a crucial player in the AI supply chain. This has attracted significant interest from investors, highlighting Taiwan’s pivotal role in the semiconductor market.
In 2023, Taiwan led the way in advanced chip manufacturing technology, holding a 68% global capacity share in 16- or 14-nanometer processes and more. The country also dominated in extreme ultraviolet generation processes, with nearly 80% market share in technologies like 7-nanometer chips. These advancements have positioned Taiwan as a leader in developing powerful and cutting-edge semiconductor products.
Despite facing challenges like the recent earthquake and geopolitical risks, Taiwan has demonstrated remarkable resilience in its semiconductor industry. The quick response and effective business continuity plans implemented by Taiwanese companies have helped mitigate potential disruptions and ensure the stability of the capital market.
Looking ahead, Taiwan’s solid fundamentals, resilience, and quick response capabilities are expected to support its capital markets amidst uncertainties like the outcome of the U.S. elections and military conflicts. Overall, Taiwan’s continued success in the semiconductor industry underscores its importance in shaping the future of technology and innovation.
In my opinion, Taiwan’s rapid growth and dominance in the semiconductor industry are commendable, showcasing the country’s ability to adapt to evolving technological trends and market demands. The strong fundamentals and innovative capabilities of Taiwanese companies, coupled with their resilience in the face of adversities, bode well for the future of Taiwan’s semiconductor sector. As the global demand for advanced chips and AI technologies continues to rise, Taiwan’s position as a key player in the semiconductor market is likely to strengthen further, driving continued growth and prosperity for the country’s economy.