ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Technology

With demand from East and West, Taiwan sees record chip orders

Production on island expected to grow 21% to $113bn

Taiwan Semiconductor Manufacturing Co. seeks more Japanese suppliers of chip production equipment to support its growth in orders. (Photo courtesy of TSMC)

TAIPEI -- Taiwanese chipmakers will boost output 21% this year to a record 3.22 trillion New Taiwan dollars ($113 billion), government estimates show, benefiting from increased demand for semiconductors from both the East and West.

Production is expected to grow by another 4% next year, according to a survey by the Industry, Science and Technology International Strategy Center, a Taiwanese public-sector think tank. The projected 21% increase from 2019 would represent the sharpest gain in the past decade. The figures include chip design.

This trend results partly from Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, leveraging its advanced technology to land an avalanche of orders from Apple and other U.S. tech companies.

U.S. sanctions against Huawei Technologies and other mainland Chinese tech firms also pushed the American companies toward Taiwan for contract semiconductor manufacturing.

Due to the healthy influx of orders, TSMC will raise capital spending 14% this year to around $17 billion.

The U.S. will own the largest share of semiconductor production at 43%, ahead of Taiwan at 20% and South Korea in third place with 16%, according to the think tank. The production figures includes chip design.

Taiwanese President Tsai Ing-wen has vowed to turn the island into an advanced semiconductor processing center, and the government has moved to support that endeavor.

InvesTaiwan, part of the island's Ministry of Economic Affairs, said Tuesday that it will collaborate with Mizuho Bank to promote investment in Taiwan by Japanese businesses, through a memorandum of understanding signed with the Japanese bank.

Mizuho will act as an intermediary between Taiwanese officials and Japanese semiconductor companies.

Japan is strong in semiconductor production equipment and materials. Over 100 companies have set up shop in Taiwan, and they support production at TSMC and other Taiwanese chipmakers.

TSMC's production is so brisk that "Japanese suppliers are approaching their limit in production capacity, and TSMC wants even more than before for Japanese companies to come to Taiwan," said Takeshi Kihara, general manager of Mizuho's Taipei branch.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more