SEMICON Taiwan 2024 to enhance economic spillover effects

The global spotlight will once again turn to Taiwan, thanks to semiconductors. SEMICON Taiwan 2024, the world's largest and most influential annual semiconductor event, takes place from September 4-6 at the Nangang Exhibition Center Halls 1 and 2, marking the first time the event is held on such a grand scale. 

A pre-show press conference featured prominent guests, including Jyh-Huei Kuo, Minister of Economic Affairs, Tien Wu, CEO of ASE, David Chuang, Chairman of TAMI, and Patrick P. Chen, Chairman of TMBA. 

These industry leaders gathered to analyze market outlooks and discuss how Taiwan's semiconductor industry can leverage its strengths to enhance economic spillover effects. Clark Tseng, Senior Director, Market Intelligence, SEMI also provided an in-depth overview of the global semiconductor equipment and materials market outlook, and wafer fab investment trends.

Olympics of semiconductor industry in Taiwan

"Taiwan's semiconductor industry has become the most critical pillar of the global supply chain, encompassing key sectors such as IC design, wafer manufacturing, and component integration. With the advent of the Wafer Manufacturing 2.0, Taiwan has emerged as a global market leader," said Terry Tsao, Global Chief Marketing Officer and President of Taiwan, SEMI. 

"This year's SEMICON Taiwan, themed 'Breaking Limits: Powering the AI Era,' delves into technological innovation, cross-industry integration, and the semiconductor industry's spillover effects, highlighting Taiwan's exceptional semiconductor capabilities that drive advancements in AI and global technology. The record-breaking scale of this year's event further underscores Taiwan's leadership in the global semiconductor sector."

AI chips propel strong semiconductor market growth

Driven by AI, geopolitical factors, and enhanced supply chain resilience, semiconductor investments and capacity expansion are set to diversify globally, ushering in a new growth phase for the semiconductor market. Clark Tseng, Senior Director, Market Intelligence, SEMI noted that while seasonal demand softness and declining consumer purchasing power led to a slight dip in electronics sales in Q1 2024, the recovery in the IC market has already reflected in a 79% surge in memory prices and sales in Q1, with robust growth expected to continue at a 27-29% annual growth rate through 2030. 

AI-driven demand for high-performance computing (HPC) chips is expected to accelerate the semiconductor industry's strong recovery, with the AI semiconductor market projected to achieve a 24% CAGR (Compound Annual Growth Rate) by 2030. This growth will also drive double-digit expansion in the semiconductor equipment market, with the market size likely to exceed $127 billion. Taiwan, China, and South Korea are expected to remain global leaders in equipment spending.

Industry, government, and academia embrace AI wave

Semiconductors are not only foundational to many current industries but also critical to the development of sectors such as satellites, drones, autonomous vehicles, AI, and security systems, where advanced processes and chips are crucial. 

Jyh-Huei Kuo, Minister of Economic Affairs stated that the next five years will be pivotal for Taiwan's semiconductor industry, with the government eager to see the continued expansion of semiconductor spillover effects and the SEMICON Taiwan 2024 platform connecting the global semiconductor industry to reinforce Taiwan's semiconductor ecosystem and global leadership. The government will continue to promote various initiatives to build Taiwan's semiconductor strategy, leveraging Taiwan's critical influence in advanced AI technologies.

Tien Wu, CEO of ASE., Vice Chairman of SEMI International Board of Directors, shared insights on how semiconductor technology breakthroughs are creating a golden era for the industry. 

He mentioned that AI is becoming a major driver of semiconductor innovation, with the industry at a crucial moment for reshaping the future. The growing demand for software is challenging hardware and technology integration, and the supply chain must address geopolitical realignments. 

Through diversified R&D integration, the efficiency of chips, packaging, system design, and materials and equipment will be significantly enhanced, which is crucial for AI applications. Facing future challenges and opportunities, choosing the right partners and development directions will be key to a company's success.

Doris Hsu, Chairperson & CEO, GlobalWafers Co. Ltd., Member of SEMI, stated that Taiwan's leadership in advanced processes and materials will drive breakthroughs in the global market. Taiwanese companies should seize AI expansion opportunities, promote upstream and downstream cooperation, and enhance competitiveness. Continuous R&D and collaboration will lay the foundation for technological development and create greater value.