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

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

This document is produced by Eastspring Investments (Singapore) Limited and issued in:

Singapore by Eastspring Investments (Singapore) Limited (UEN: 199407631H)

Australia (for wholesale clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore, is exempt from the requirement to hold an Australian financial services licence and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Australian laws

Hong Kong by Eastspring Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Indonesia by PT Eastspring Investments Indonesia, an investment manager that is licensed, registered and supervised by the Indonesia Financial Services Authority (OJK).

Malaysia by Eastspring Investments Berhad (200001028634/ 531241-U) and Eastspring Al-Wara’ Investments Berhad (200901017585 / 860682-K).

Thailand by Eastspring Asset Management (Thailand) Co., Ltd.

United States of America (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is registered with the U.S Securities and Exchange Commission as a registered investment adviser.

European Economic Area (for professional clients only) and Switzerland (for qualified investors only) by Eastspring Investments (Luxembourg) S.A., 26, Boulevard Royal, 2449 Luxembourg, Grand-Duchy of Luxembourg, registered with the Registre de Commerce et des Sociétés (Luxembourg), Register No B 173737.

United Kingdom (for professional clients only) by Eastspring Investments (Luxembourg) S.A. - UK Branch, 10 Lower Thames Street, London EC3R 6AF.

Chile (for institutional clients only) by Eastspring Investments (Singapore) Limited (UEN: 199407631H), which is incorporated in Singapore and is licensed and regulated by the Monetary Authority of Singapore under Singapore laws which differ from Chilean laws.

The afore-mentioned entities are hereinafter collectively referred to as Eastspring Investments.

The views and opinions contained herein are those of the author, and may not necessarily represent views expressed or reflected in other Eastspring Investments’ communications. This document is solely for information purposes and does not have any regard to the specific investment objective, financial situation and/or particular needs of any specific persons who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. It may not be published, circulated, reproduced or distributed without the prior written consent of Eastspring Investments. Reliance upon information in this document is at the sole discretion of the reader. Please carefully study the related information and/or consult your own professional adviser before investing.

Investment involves risks. Past performance of and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments.

Information herein is believed to be reliable at time of publication. Data from third party sources may have been used in the preparation of this material and Eastspring Investments has not independently verified, validated or audited such data. Where lawfully permitted, Eastspring Investments does not warrant its completeness or accuracy and is not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice.

Eastspring Investments companies (excluding joint venture companies) are ultimately wholly owned/indirect subsidiaries of Prudential plc of the United Kingdom. Eastspring Investments companies (including joint venture companies) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company Limited, a subsidiary of M&G plc (a company incorporated in the United Kingdom).