What’s sparkling in Taiwan’s semiconductor industry

Watch out, Taiwan’s the golden boy in IC design.

We all know Taiwan for its night markets and bubble teas, but did you know that Taiwan is also home to some of the coolest technologies? From electricity-free fan-based dehumidifiers to energy saving glass1, Taiwan is known for its electronics — especially its semiconductors2.

It’s no surprise then, that its Integrated Circuit (IC) design industry, an essential aspect of the semiconductor industry, ranks second globally. And that’s a big deal because chip design is becoming more important in driving chip performance as it becomes harder to make smaller chips.

Why Taiwan?

Taiwan’s domestic semiconductor industry offers exposure to the fast-growing sectors like Artificial Intelligence (AI) cloud computing, self-driving cars, and the Internet of Things (IoT). What makes the country a powerhouse is its unique semiconductor ecosystem. Its supply chain management is top-notch, because many of the relevant design, manufacturing, and packaging companies — including the top three world-leading foundry businesses — are in Taiwan.

The IC design industry is no small player in the scheme of things. It reaps the second largest revenue share within Taiwan’s semiconductor industry. Companies need to come up with innovative IC designs to drive IC performance, and IC design companies in Taiwan invest significantly in Research and Development (R&D) to stay ahead of competitors.

Keeping ahead of the evolving design landscape

With the IC design industry being such a diverse industry, investors also need to keep ahead of developments within the various sub-sectors. While geopolitical tensions and new design complexities might pose a challenge, newer innovations in the field as well as M&A activities also offer potential opportunities for growth.

To learn more about Taiwan’s IC design industry, read our full article

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Sources:
1 Innovative inventions at Taiwan Innotech Expo
2 The world is dangerously dependent on Taiwan for semiconductors

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