The year 2023 has been a banner year for the artificial intelligence (AI) technology industry, mainly driven by generative AI, which in turn has been fueled by the proliferation of applications. In fact, it was AI technologies and applications that provided positive news amid the slowdown in the semiconductor industry, emerging as a key content and revenue driver, according to analyst firm Counterpoint Research. Chipmakers who have been focusing on AI chips, together with their supply chain partners, have been reaping the rewards from the booming demand for ICs and processors.

And despite the slowdown in the semiconductor industry last year, the outlook remains bright as new technology applications continue to emerge, in line with the demand for higher and higher computility and the continuing focus on chip performance.

To capitalize on future trends, meet new opportunities, and address challenges posed by technological transformations, Taiwan approved last November a NT$300 billion ($9.3 billion) program aimed at meeting the opportunities and challenges posed by future technological transformations. To be implemented over a 10-year period, the Taiwan Chip-based Industrial Innovation Program (Taiwan CbI) is hinged on four main strategies: implementing generative AI in chip, system, and product design to drive innovation; improving domestic talent cultivation and attracting global R&D professionals; accelerating adoption of heterogeneous integration and other advanced innovation technologies; and harnessing Taiwan’s “silicon island” strengths to attract international startups and investment.

Tsung-Tsong Wu, Minister of the National Science and Technology Council of Taiwan

According to the Executive Yuan, the program’s first phase will last for five years (2024-2028) and focus on leveraging Taiwan’s leading global position in IC design, chip manufacturing, packaging, and testing, to develop innovative new applications through integrating silicon chips with critical technologies such as generative AI.

“When ChatGPT came out—this is smart AI—we are considering what Taiwan should do in semiconductors. So, we passed the ‘Taiwan CbI’ over the next 10 years,” says Tsung-Tsong Wu, Minister of the National Science and Technology Council of Taiwan. “This is to allow that, while Taiwan expands into other industries, we also want to train a lot more talents in IC design.”

In an exclusive interview with EE Times Asia, Minister Wu says the first step is to cultivate the talents that Taiwan will need for the next 10–20 years. One example is further improving the training and educational facilities. Next is to continue being at the forefront of advanced semiconductor technology developments.

“The third most important point is that we will be very welcoming—we welcome startups and talents from Europe, the United States, Japan, and ASEAN, to work with Taiwan, from IC design and manufacturing to packaging and testing—the entire pipeline. The Taiwan Government is very willing to make it more friendly, because it is a win-win situation for the rest of the world as well.”

Extending Taiwan’s semiconductor leadership

Over the past 40 years, Taiwan has been investing heavily toward its semiconductor industry, making it the leading figure in the chip manufacturing, packaging, and testing industry worldwide at present.

“We have a great foundation, and I think in the next 20 years, our foundation in semiconductors will play a very important role,” says Minister Wu. He says the implementation of generative AI in people’s everyday lives will drive further innovation in the semiconductor industry.

“Semiconductors will be at the core of all industry innovations in the future. And it is not chips from the past, but chips combined with generative AI,” he says. “Taiwan has a lot of experience in semiconductor manufacturing, and we are willing to share our experience. For instance, everybody knows that TSMC [Taiwan Semiconductor Manufacturing Co. Ltd] has a strong manufacturing technology, to make cutting-edge 2nm chips. They are developing new technologies very successfully—this is one breakthrough for Taiwan’s semiconductor technology.”

As Moore’s Law continues to approach its bottleneck and the industry begins to turn to “heterogeneous integration,” developing 2.5D and 3D ICs, the Taiwanese government and industry are also investing heavily in related R&D to promote advanced packaging, according to Minister Wu.

He adds that Taiwan will continue to maintain its position in advanced processes. “New technologies like 3D ICs and heterogenous integration, we are still progressing as well,” he says. “But I must say that the demand for chips in the future will exponentially increase. It will explode. And we cannot create all of the chips in Taiwan. We need to see where the demand is, say for example the United States, Germany, or Europe, and we will set up manufacturing plants there. And we are also considering that in the future, if there is more demand in Asia, we will also be closer to our clients. This is a win-win situation. But I also think that we should share our experience with like-minded nations. Nations that pursue democracy, freedom, and human rights. These are things that we are proceeding with right now.”

Fostering technological cooperation

While Taiwan leads the global semiconductor manufacturing, packaging, and testing industries, it still has a room for improvement when it comes to IC design. And according to Minister Wu, this is a sector that they are looking to develop further.

In fact, it is one of the key strategies for the Taiwan CbI: to upgrade core academic and research infrastructure, as well as teaching materials, to enable Taiwan to become a leading international IC training hub for cultivating IC design talent. In line with this, Taiwan will enhance the recruitment of international talent through collaboration between industry, higher education, and research institutes, as well as through overseas talent scouting.

“We see that semiconductors are a critical in industrial innovation,” says Minister Wu. “The next 30 years is when we will see semiconductors used in every aspect of our daily lives. For me, I envision that in the future, your computer or your cellphone will have tiny sensors, edge AI, and they will achieve functionality that we have never seen before. And this requires us to work with other countries because each country has its own strengths and advantages. Therefore, IC design talent training is a great starting point for collaboration.”

He adds that the Taiwan CbI is something that Taiwan is willing to cooperate with other friendly countries on.

“For global future innovation, Taiwan is willing to play a cooperative role,” says Minister Wu.

By: DocMemory
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