Taiwan Aims to Become Self-sufficient in Semiconductor Equipment

[TheLostSwede]

The Taiwanese President, Tsai Ing-Wen, told local media that she believes that Taiwan can become self-sufficient when it comes to semiconductor equipment, although this is obviously not something that would happen overnight. A large part of why this has even been considered seems to be the current pandemic, as although Taiwan might not have suffered much from the pandemic itself, the nation has suffered when it comes to imports, as just in time production and delivery systems have broken down, which has affected most industries in Taiwan.

In 2021 Taiwanese semiconductor companies invested some NT$1 trillion (~US$36.3 billion), of which 70 percent was in equipment, according to the President, with around NT$600 billion (~US$21.8 billion) of that money being towards imported equipment. It also shows that local semiconductor equipment makers have a lot of work to do, especially if they're intending to catch up with their international competitors. The President also mentioned that the local semiconductor equipment industry grew by 28.7 percent in 2021, although it was still relatively small at NT$116.7 billion (~US$4.2 billion), but she was quoted as saying that she's 100 percent certain that Taiwan has the ability to make all semiconductor equipment the [local] industry needs.



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[phanbuey]

Taiwan is an amazing country. I hope they will be successful.

 

[TheoneandonlyMrK]

Does this include lithography equipment, because the likes of asml didn't get where they are without billions spent on RnD, seams impossible though China are trying too.

 

[Wirko]

Does this include lithography equipment, because the likes of asml didn't get where they are without billions spent on RnD, seams impossible though China are trying too.

I'm asking myself the same thing. Apart from ASML scanners, there are many other types of machines, made in US, Japan, Europe ... but haven't heard of Taiwan. Do they make any, and do they have a significant market share?

 

[TheLostSwede]

Does this include lithography equipment, because the likes of asml didn't get where they are without billions spent on RnD, seams impossible though China are trying too.

Unclear, as this is obviously just what the government is wishing for. ASML is one of many companies it'll be hard to catch up with, unless there's a change to some entirely different way of making semiconductors or whatever replaces them at some point in the future.

I'm asking myself the same thing. Apart from ASML scanners, there are many other types of machines, made in US, Japan, Europe ... but haven't heard of Taiwan. Do they make any, and do they have a significant market share?

Whatever is currently made in Taiwan is clearly a minority of the equipment used, based on the money spent of imported equipment.

 

[phanbuey]

Seems like a great time to cross-pollinate. Put/expand and build ASML factories into Taiwan, put Taiwanese Fabs in EU and US etc. There would need to be some precautions with this, but it would seem like the best way to ensure redundancy and high-availability of supply chain.

 

[TheLostSwede]

Seems like a great time to cross-pollinate. Put/expand and build ASML factories into Taiwan, put Taiwanese Fabs in EU and US etc. There would need to be some precautions with this, but it would seem like the best way to ensure redundancy and high-availability of supply chain.

Sadly it's unlikely to happen, regardless of how much sense it makes.

 

[Wirko]

Seems like a great time to cross-pollinate. Put/expand and build ASML factories into Taiwan, put Taiwanese Fabs in EU and US etc. There would need to be some precautions with this, but it would seem like the best way to ensure redundancy and high-availability of supply chain.

Be careful what you wish for, it may just come true. If this ever happens, it will be done in a way to make the factories dependent on each other, not redundant.

Because ... when was the last time shareholders demanded redundancy?

 

[phanbuey]

Be careful what you wish for, it may just come true. If this ever happens, it will be done in a way to make the factories dependent on each other, not redundant.

Because ... when was the last time shareholders demanded redundancy?

All the time -- shareholders don't like their investment relying on a single point of failure. Diversifying and managing risk is core.

Would you rather invest in TSMC knowing that Communist-occupied West Taiwan could potentially take over that investment? Or would you feel better knowing that they also have factories on other continents with free markets and your investment is at least somewhat protected from tribal geopolitical nonsense?

 

[boidsonly]

Any investment in Taiwan is simply an investment that China will benefit from. If anyone thinks there is a chip shortage now, wait until China takes Taiwan while the world idly stands by. China will have the world by the testes.

 

[phanbuey]

Any investment in Taiwan is simply an investment that China will benefit from. If anyone thinks there is a chip shortage now, wait until China takes Taiwan while the world idly stands by. China will have the world by the testes.

Sure but the inverse applies as well -- bringing Taiwanese companies into the international space and having them build fabs on other continents will secure what Taiwan has been able to accomplish, and further cement ties, should such a thing happen.

The Chinese people are not stupid, nor are they the incredible fans of the CCP that the CCP likes to advertise that they are. Seeing Taiwan advancing with 4-5x GDP per capita while under the thumb of the CCP is not something that's going unnoticed.

 

[not_my_real_name]

In 2021 Taiwanese semiconductor companies invested some NT$1 trillion (~US$36.3 billion, didn’t they?).

It is unlikely that it will be possible to produce advanced equipment there. For many countries, this is politically disadvantageous, in my opinion. But it would be nice if they will achieve at least some self-sufficiency.

 

[R-T-B]

Any investment in Taiwan is simply an investment that China will benefit from. If anyone thinks there is a chip shortage now, wait until China takes Taiwan while the world idly stands by. China will have the world by the testes.

I really hope that does not happen because I don't see a way out of that not involving US war with China.

 

[kapone32]

I really hope that does not happen because I don't see a way out of that not involving US war with China.

Chips are more valuable than Oil or Gold in today's World.

 

[R-T-B]

Chips are more valuable than Oil or Gold in today's World.

Exactly my point.

 

[kapone32]

Exactly my point.

That is why I feel that the Russian buildup and the dustup with India are diversions for the real prize. If Europe declares War on Russia over Ukraine China would instantly attack Taiwan. We in the West forget that for over 100 years China and Russia have shared a border much like the USA and Canada.

 

[DeathtoGnomes]

Exactly my point.

 

[R-T-B]

That is why I feel that the Russian buildup and the dustup with India are diversions for the real prize. If Europe declares War on Russia over Ukraine China would instantly attack Taiwan. We in the West forget that for over 100 years China and Russia have shared a border much like the USA and Canada.

They share a border, but they are far from friendly. Mongolia is basically a mutually agreed upon buffer state setup just because they can't stand each other. Otherwise the border sharing would be much bigger.

I feel the same though, because they view the Russian actions as a distraction for us in that scenario, friendship be damned.

 

[kapone32]

They share a border, but they are far from friendly. Mongolia is basically a mutually agreed upon buffer state setup just because they can't stand each other. Otherwise the border sharing would be much bigger.

I feel the same though, because they view the Russian actions as a distraction for us in that scenario, friendship be damned.

What I meant is the where the border is much the same as it is between the US and Canada where much of is is unguarded and people can travel across almost without contest. China only starved after Russia crumbled but it does not mean that they still do not share technology, among other things. As foolishly as the West thought that money would make China turn away from Russia, but Russia is not in a position where it is wanting either. Indeed because of the Greed Co-efficent in the West, Europe is being faced with the reality that the Soviet disregard for Environmental laws, among other things are a stark contrast to the reality of Climate Change induced Winter weather in places that forgot that they ever got snow. What snow signifies though is weather below zero meaning a source of heating is desperately needed hence Gulfstream.

 

[InVasMani]

That is why I feel that the Russian buildup and the dustup with India are diversions for the real prize. If Europe declares War on Russia over Ukraine China would instantly attack Taiwan. We in the West forget that for over 100 years China and Russia have shared a border much like the USA and Canada.

Everyone likes a good hockey fight. Taiwan just trying to be more self sufficient like everywhere else. The pandemic has defiantly raised more awareness of how over reliant countries are on each other which can be both good and bad. It's better to be prepared to a point and I think that's just what the world is coming to terms with it's been under-prepared in area's by being over reliant on things staying the same and eventually they don't.