Semiconductors fuel rapid growth in this industry, MOEA estimates output to exceed NT$200 billion this year.

2026/01/09

United Daily News
January 1, 2026
Author: Economic Daily News, Reporter: Jiang Ruizhi / Taipei Instant Report

The Department of Industrial Development, Ministry of Economic Affairs, stated that with the continuous increase in demand for AI and high-performance computing (HPC) applications, Taiwan's semiconductor equipment industry is growing rapidly, with its output value projected to exceed NT$180 billion in 2025 and NT$200 billion in 2026. The Department of Industrial Development will increase its efforts, allocating at least an additional NT$5 billion over the next five years to continue investing in the development of advanced equipment technologies such as panel packaging and silicon photonics packaging.

Taiwan's semiconductor manufacturing shines globally. The Department of Industrial Development stated that, however, process equipment still heavily relies on foreign suppliers, and the industry may be affected by risks such as geopolitical tensions and supply chain uncertainties in the future. Therefore, it is essential to enhance the industry's self-reliance and resilience. The Taiwan Industrial Development Agency (TIDA) promotes independent R&D and verification of semiconductor equipment through its industry-innovation platform-themed projects. By combining this with the needs of end-user manufacturers such as TSMC (2330) and ASE (3711), TIDA aims to establish a self-reliant equipment supply chain, strengthening the resilience and competitiveness of the industry supply chain and driving industrial upgrading and output growth.

TIDA Director-General Chiu Chiu-hui pointed out that the Ministry of Economic Affairs has promoted the development of 29 key semiconductor equipment projects to date. Coupled with the driving force of AI, Taiwan's semiconductor equipment industry is experiencing rapid growth, with its output value projected to exceed NT$180 billion in 2025, representing a growth rate of 18.4% compared to NT$152 billion in 2024, demonstrating strong momentum.

TIDA stated that the growth momentum of Taiwan's semiconductor equipment industry mainly comes from semiconductor end-users' continued investment in advanced processes to meet the demand for AI chips. According to forecasts from the Semiconductor Equipment and Materials International (SEMI) and the Taiwan Electronic Equipment Manufacturers Association (TEEIA), the equipment output value is expected to maintain an upward trend in 2026, potentially exceeding NT$200 billion.

Chiu Chiu-hui stated that to strengthen Taiwan's key semiconductor equipment technologies, the Ministry of Economic Affairs will increase its efforts, allocating at least an additional NT$5 billion over the next five years to continuously invest in the development of advanced equipment technologies such as panel packaging and silicon photonics packaging, hoping to create new milestones together with the industry.

Silicon photonics is currently a hot topic, listed as one of the top ten new AI infrastructure projects. Regarding silicon photonics packaging equipment, the Industrial Development Agency (IDA) has already invested in the development of chip bonding and electrical measurement equipment.

The IDA explained that in recent years, the increasing demand for AI, automotive, communication, and HPC high-speed computing chips has driven up the demand for chip manufacturing equipment. The Executive Yuan has outlined policies such as the "Crystal Innovation Taiwan Solution" and the "Ten New AI Infrastructure Development Programs." The Industrial Development Agency (IDA) will continue to subsidize Taiwanese companies developing silicon wafer semiconductors, compound semiconductors, and advanced packaging, including panel-level packaging and silicon photonics packaging equipment. The IDA will also assist companies in implementing these technologies in end-product production lines at companies like TSMC, ASE, Win Semiconductors, UMC, and Powertech, ensuring quality verification and reliability testing, thereby enhancing Taiwan's semiconductor equipment output and self-sufficiency.

【Disclaimer】
The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, text description and originality have not been verified by this site. This site does not make any guarantee or commitment to this article and all or part of the content, authenticity, completeness, and timeliness. It is for readers' reference only. Please verify the relevant content yourself.

Creating Nano Technologies, Inc.
59 Alley 21 Lane 279, Chung Cheng Road, Yung Kang City, Tainan, TAIWAN
TEL:886-6-2323927 FAX:886-6-2013306 URL: http://www.creating-nanotech.com

BACK TO LIST