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Taiwan Equipment Firms Eager to Break into the IC Supply Chain

By Yiting Wang
Published: Sep 04,2015

Kenmec’s 300mm Equipment Front-End Module

TAIPEI, Taiwan - Taiwan domestic semiconductor equipment industry is eager to break into the supply chain of semiconductor industry.

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At Semicon Taiwan 2015, on 2nd -4th Sep. at Taipei Nangang Exhibition Center, , Taiwanese domestic semiconductor equipment manufacturers are not absent, including Hermes-Epitek, Markettech, Guden Precision Industrial, Hiwin microsystem, Gongin Precision Machine, Kenmec Mechanical Engineering, and Sinbon Electronics, exhibiting their production capability.

According to the SEMI (Semiconductor Equipment and Materials International) statistics, Taiwan is the largest spending markets of semiconductor equipment, likely being account for about 18% of the overall semiconductor industry capex in 2015 compared to 2014, followed by Korea.

All kinds of foreign equipment manufacturers have established the business location or research center In Taiwan. This year, according to Ministry of Economic Affairs (MOEA) in Taiwan report, US-based Lam Research will extend the its investments to set up “Global Semiconductor Equipment Renovation Center “ , which will cultivate the domestic equipment suppliers and to be the distribution location for global market.

However, In contrast with Korea, with expectation of a rise of 50% of local content rate in 2020, the problem of low local content rate in Taiwan, accounting for about 18%, still exists.

Accordingly, under the initiate of "Promote the semiconductor process equipment and components project" initiated by MOEA, Taiwan’s Metal Industries Research and Development Center (MIRDC) was invited to demonstrate its exclusively constructed functional testing platform. Moreover, a variety of domestic manufacturers, under this assistance, showcased their technology and equipment at Taiwan Localization Pavilion in Semicon 2015.

The competition of semiconductor equipment market is getting intense, not only the existed competitors but the growing manufacturer. Taiwan domestic semiconductor equipment industry still try hard to break into the supply chain.

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