Taiwan’s Semiconductor Manufacturing Industry and Its Role in the International Supply Chain
Semiconductor products have emerged as the cornerstone of modern technology. The world’s critical dependence on semiconductors was highlighted during the shortage following the COVID-19 pandemic. Semiconductors are the materials and substances that are the foundation of microchips, also known as integrated circuits (ICs). Without ICs, industries could not supply the demand for the technology that modern society is dependent on, such as phones, cars, household appliances, defense technology, and medical devices.
ICs are of varying sizes, measured in nanometers (nm), which equip devices with different capacities. For instance, 40nm chips can be applied to central processing units (CPUs), graphic processors, and hard disk drives while 3nm chips have been utilized in MacBooks, iPhone 15 Pro, and iPad Pro models. These individual ICs are derived from a wafer. A wafer is a disc thinly sliced from a silicon rod mainly made of silicon extracted from sand.
This backgrounder aims to provide an overview of Taiwan’s semiconductor industry, including its development and current role in the international semiconductor supply chain.
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