When discussing the global semiconductor industry, it is impossible to overlook the role of Taiwanese companies in integrated circuit design, manufacturing, and packaging and testing. This international edge that the nation's semiconductor-related firms enjoy was on display at an annual exhibition dubbed SemiTech Taipei 2008 held recently at the Taipei World Trade Center. Co-hosted by the Taiwan Semiconductor Industry Association and the Taipei Computer Association, the show attracted 150 companies using 300 booths to exhibit the latest in IC technology. Founded in 1996 with over 140 corporate members, the TSIA aims to assist Taiwan's semiconductor sector in maintaining its competitive edge in the global marketplace. International semiconductor heavyweights, including Taiwan Semiconductor Manufacturing Co. Ltd., the world's largest dedicated semiconductor foundry; and Powerchip Semiconductor Corp., the nation's largest memory chip producer, attended the show. Meanwhile, Advanced Semiconductor Engineering Inc., the world's largest chip packager; and Siliconware Precision Industries Co. Ltd., Taiwan's second-largest supplier of chip packaging and testing service, were also present. Frank Huang, chairman of TSIA as well as PSC, said at the show's opening ceremony that the entire production value of Taiwan's semiconductor industry last year totaled $44.1 billion, a number equating to a global market share of between 22 percent and 25 percent. “Taiwan has stood side by side with the United States, Japan and South Korea as the world's leading four nations that dominate the global semiconductor sector,” Huang said. “The purpose of the show,” he continued, “is to set up a platform for Taiwan's semiconductor companies and to closely collaborate with each other while creating a link with other manufacturers abroad.” President Ma Ying-jeou, who delivered an address at the opening, said that Taiwan has taken the lead in the semiconductor industry worldwide after years of all-out effort by domestic companies. The nation, moreover, is a specialist in the fields of IC manufacturing, packaging and testing, he added. In response to the sector's future development, the president pointed out that the new government would reconsider the needs of the high-tech industry, especially as the “Statute for Upgrading Industries” - which has provided tax breaks and preferential treatment for domestic high-tech companies since 1991 - will expire next December. Furthermore, the government will authorize the Ministry of Economic Affairs to draw up a plan that is expected to boost the entire IC sector under the principle of “prioritizing Taiwan and benefiting its people,” Ma noted. According to the Industrial Economics and Knowledge Center (IEK) - a research division founded in 2000 to offer advisory services to the government and the business community - the emergence of more energy-saving, high-efficient and low-cost IC chips is impacting the entire semiconductor sector. Recently, semiconductor manufacturers have had to deal with the challenge of increased performance by producing IC chips that are smaller but offer new functionality in packaging. Therefore, the expanding consumer electronics market has spurred on innovations such as 3D packaging, the IEK noted. This form of packaging is based on an integrated approach that facilitates a technology platform applicable to digital and mixed signal electronics, wireless, electro-optical and other devices. As core technology for miniaturization and increased performance, the center continued, 3D packaging is an area where Taiwan's semiconductor companies could beef up the added value and profitability of their products.
