The Taiwan Electronics Association released a white paper yesterday, putting forward 12 suggestions, suggesting that the government expand the "Industrial Innovation Regulations" for semiconductor equipment and accelerate the localization of the international supply chain.

(Photo by reporter Chen Meiying)

Put forward 12 suggestions and hope to build Taiwan's international supply chain ecosystem

[Reporters Chen Meiying, Liao Jianing/Report from Taipei] The Taiwan Electronics Association released a white paper yesterday, focusing on the three main axes and putting forward twelve suggestions. The government expanded the "Industrial Innovation Regulations" for semiconductor equipment, accelerated the localization of the international supply chain, and created a complete international supply chain ecosystem in Taiwan by combining the technical guidance of the localization of international manufacturers.

Ministry of Economic Affairs: The object of the Industrial Creation Regulations is not limited to industries

In this regard, an official from the Ministry of Economic Affairs stated that the subsidy objects of the Industrial Innovation Regulations are not limited to industries, and small-scale enterprises are applicable to Article 10 of the Industrial Innovation Regulations; in addition, Taiwan has a complete set of resources to help Taiwanese factories enter the international supply chain. Advantages of the industrial ecosystem. Large foreign manufacturers come to Taiwan to set up factories with local procurement needs, while small domestic factories can provide the required parts and materials, forming a win-win situation of mutual complementarity and mutual benefit.

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The industry is worried about the difficulty of offsetting losers and international competition

Ye Shengfa, the convener of the white paper and the former chairman of Junhao, called on the government to propose a semiconductor industry policy with national strategic significance. It is hoped that Taiwan's semiconductor design, manufacturing and packaging will continue to lead, and it will also drive the development of materials and equipment.

Ye Shengfa pointed out that the four most important factors affecting the semiconductor industry are manufacturing process, talents, equipment and materials.

The U.S. blocked equipment, materials and talents, so that China could not keep up and continued to go down; the U.S., Japan, and South Korea have all invested heavily in the development of the semiconductor industry. For equipment, Japan proposed 600 billion yen to subsidize 50% of the semiconductor industry's factory construction and equipment costs, while South Korea allowed large companies to enjoy a maximum of 40% R&D credit and 10% equipment credit.

Yeh Shing-fat said that the development of equipment and materials in Taiwan has lagged behind, and there is only one production and innovation regulation. The investment and R&D credits are far behind the competition. How can it compete with foreign countries?

The whole world is developing semiconductors. Now TSMC has won the world for three years. "If the government does not raise the semiconductor industry to the national strategic level, will TSMC win in three years' time?"

The Taiwan Electronics Association put forward the first white paper since 2019. This year, the direction of the appeal focuses on three main axes: "localization of the international supply chain", "promoting the development of next-generation semiconductors" and "creating a net-zero sustainable ecosystem", and Put forward eight visions and twelve suggestions.

In 2022, the output value of Taiwan's electronic equipment has exceeded 400 billion yuan; among them, the output value of semiconductor equipment is 142.4 billion yuan, and the output value of display equipment is 101.1 billion yuan.

The target is that the output value of Taiwan's electronic equipment will exceed one trillion yuan in 2030, and it will be the fastest growing trillion-dollar industry in Taiwan.

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