The Taipei Representative Office in Singapore Releases “Taiwan and the Global Semiconductor Supply Chain: 2023 in Review” Report

The Taipei Representative Office in Singapore (TRO) has unveiled the latest English edition of “Taiwan and the Global Semiconductor Supply Chain: 2023 in Review”. This comprehensive report aims to provide Singapore and the wider region with an in-depth understanding of Taiwan's pivotal role in the global semiconductor supply chain. Additionally, the report delves into recent global developments and examines Taiwan's position amidst these trends. Furthmore, the TRO advocates Singaporean and global semiconductor companies to invest and collaborate in Taiwan. (See below Table)

Taiwan remains a global powerhouse in the semiconductor industry, hosting some of the world's largest and most advanced semiconductor companies, including the Taiwan Semiconductor Manufacturing Company (TSMC) and ASE Technology Holding Company. Particularly, TSMC not only maintained its stronghold on the global semiconductor foundry market but also expanded its market share from 55.4% in 2022 to 58.9% in 2023, achieving a historic peak of 61.2% in the fourth quarter of 2023. (See below figure)

Overall, in 2023, Taiwan maintained its leading position in the semiconductor industry, boasting the highest market share in both wafer foundry and integrated circuit (IC) packaging and testing. With a production value of US$ 80.0 billion, Taiwan accounted for an impressive 77.9% of global foundry production (excludes integrated device manufacturers). Similarly, in IC packaging and testing, Taiwan's production value reached US$ 18.7 billion, representing 52.6% of the global production value. Furthermore, with a production value of US$ 35.2 billion, which translates to a notable global share of 21.3%, Taiwan ranked second globally in IC design.

In view of Taiwan's crucial role in the global semiconductor supply chain, Taiwan's Ministry of Economic Affairs has outlined three key areas of collaboration with Taiwan, namely, integration into Taiwan’s core cluster, exploration of the expanding global semiconductor equipment and materials market, and establishment of operations and research centers in Taiwan to tap into the rapidly growing Asian market.

The TRO has been publishing monthly reports on key industry issues since August 2023 in our endeavor to provide up-to-date trends and developments. These reports cover a range of topics including an overview on Taiwan and the global semiconductor supply chain, TSMC's global expansion, India’s semiconductor industry, the U.S.-China conflict over semiconductors, China’s semiconductor industry, advanced semiconductor packaging and testing, Taiwan’s capital market in advancing the semiconductor industry, and the intersection of semiconductor industry with artificial intelligence (AI). We welcome you to join the WhatsApp Community of “Taiwan Semiconductor Reports” to receive timely updates of our monthly reports.