GM and All,
Second Semicon Fair Shows IC Industry Boom
October 1, 1997 (TAIPEI) -- The second Semicon Taiwan 97 Expo,
which took place at the Taiwan World Trade Center from Sept. 22-24,
reflected the boom in the local integrated circuit industry.
The semiconductor manufacturing equipment and materials show, held
only for the second time in Taiwan, attracted 500 exhibitors, up 82
percent over last year, at 850 booths.
Besides the floor show, there were 26 technical and business programs
from an IC symposium to semiconductor business opportunities, plus a
tour to the fabs in Hsinchu Science-based Industrial Park, a 90-minute
drive away from the show.
More than 15,000 visitors, mostly from the local semiconductor
industry, poured into the venue.
The quest for knowledge demonstrated by visitors indicated strong
potential of this sector in Taiwan, industry experts said.
The local IC industry enjoys the highest growth rate among its
counterparts anywhere around the world, according to James Morgan,
chairman of the Applied Materials Inc., a California semiconductor
equipment maker.
In the 45 percent global market share commanded by the Applied
Materials, Taiwan sales constitute 70 percent of the company's 1997
revenue.
During 1997, Taiwan Semiconductor Manufacturing Co., Ltd.(TSMC), a dedicated foundry, become a top client in the amount of equipment purchased from Applied Materials. Other top clients are
U.S.-based Intel Corp., Texas Instruments Inc. and Motorola Inc., and
Japan's NEC Corp.
Another local foundry, United Microelectronics Corp.(UMC) also
ranks among Applied Materials' top 10 clients this year for the first
time.
Morgan said Taiwan's unique success in Southeast Asia can be
attributed to certain conditions not found in neighboring countries: a
science park to provide a network of service facilities and supporting
satellite firms with geographical proximity as well as an abundant supply of well-educated technical manpower.
In Taiwan, there are currently 72 design houses, two optical mask
makers, 20 fabs, 23 packaging houses, and 16 testing firms supported
by three silicon wafer manufacturers, six chemical suppliers, and nine
lead frame processors.
The structure of local IC industry reflects a healthy composition to
sustain a long-term growth. In addition, there is also a constant injection of capital and knowledge to fuel further development.
During the period from 1994 to 1998, 15 major IC players in Taiwan
launched construction projects for a total of 19 new 8-in. fabs.
In the next decade, nine major firms have plans to invest an additional total of US$67.3 billion in four more 8-in, fabs and 24 new 12-in. fabs. TSMC is the one Taiwan member of the I300I (international 300 millimeter initiative) charged with formulating technical specifications associated with 12-in. fabs.
At the same time, the industry is trying to enhance its overall
competitiveness by forging international partnerships and encouraging
innovation-driven, system-level integration. International partnerships are already prevalent.
Philips Semiconductors NV of the Netherlands, Texas Instruments of
the United States, Mitsubishi Electric Corp. of Japan and Siemens AG
of Germany all have significant collaborations with local IC firms.
Altogether, the Taiwan IC industry is targeting an 8 percent share of the global market and a gross income of US$66 billion in the year 2005, with a coordinated strategic growth.
(Charlene Huang, Asia BizTech Correspondent)
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