Taiwan set to see $103 billion in semiconductor exports in 2020

Chipmakers in Taiwan poised to gain from proposed US export restrictions on China’s SMIC

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Semiconductor silicon wafer (Getty Images photo)

Semiconductor silicon wafer (Getty Images photo)

TAIPEI (Taiwan News) — Taiwan is expected to yield NT$3 trillion (US$102.9 billion) in output value of semiconductor products for the year 2020, with the objective of NT$5 trillion by 2030 highly attainable, according to the country’s top economic official.

Taiwan comes second in terms of the production value of semiconductor goods, logging NT$2.7 trillion last year, said Wang Mei-hua (王美花), Minister of Economic Affairs. August saw NT$31.1 billion’s worth of semiconductor exports and with the robust demand for 5G and AI applications, she believes the country will continue to dominate the sector globally, wrote UDN.

Taiwanese companies like United Microelectronics Corporation (UMC), VIS, Powerchip, Macronix, and Winbond can anticipate benefiting from reports of allegedly fresh sanctions on China’s SMIC by the U.S., CNA quoted Liu Pei-chen (劉佩真), a research fellow at the Taiwan Institute of Economic Research, as saying.

As SMIC accounts for 4.5 percent of the global foundry market share, the above-mentioned foundry businesses and NOR flash vendors, which are rivals of SMIC, are likely to emerge as beneficiaries of the diverted orders, Liu added. Buoyed by the news, UMC shares soared and went limit-up on Monday (Sept. 28).

Taiwan Semiconductor Manufacturing Company (TSMC), which boasts more advanced foundry process technologies than SMIC, is not predicted to gain much from the punitive measures, said Liu. The proposed sanctions on China’s biggest chipmaker will deal a heavy blow to the already battered semiconductor industry of the country, according to Financial Times.