Taiwan’s spending on semiconductor materials expanded 13.6 percent annually to US$20.13 billion last year, making it the world’s top spender for the 13th year in a row, SEMI said yesterday.
Taiwan outpaced the global semiconductor sector, which spent a record US$72.69 billion last year, up 8.9 percent from US$66.78 billion in 2021, the industry association’s tally showed.
Wafer fabrication materials and packaging materials revenue expanded 10.5 percent and 6.3 percent to US$44.7 billion and US$28 billion respectively, SEMI said.
Photo: Ann Wang, Reuters
The silicon, electronic gases and photomask segments reported the most growth in the wafer fabrication materials market, while the organic substrates segment largely drove packaging materials market growth, it said.
SEMI said that Taiwan’s robust performance was due to the “strength of its foundry capacity and advanced packaging base.”
In 2021, Taiwanese semiconductor companies purchased US$17.72 billion of semiconductor materials, led by foundry service provider Taiwan Semiconductor Manufacturing Co (台積電) and ASE Technology Holding Co (日月光投控), the world’s largest chip tester and packager, SEMI’s report showed.
China overtook South Korea to became the second-largest spender, reporting a 7.3 percent increase in spending to US$12.97 billion last year compared with US$12.08 billion in 2021.
South Korea slid to third with spending of US$12.9 billion, up 6.33 percent from US$12.13 billion in 2021.
Japan was the only region that registered a decline. It spent US$7.21 billion last year, down 1 percent from US$7.18 billion a year earlier.
Semiconductor companies in North America, led by Intel Corp, spent a combined US$6.28 billion last year — a 9.9 percent increase from US$5.71 billion in 2021.
Europe registered the fastest growth last year. Its spending increased 15.6 percent to US$4.58 billion, up from US$3.96 billion a year earlier.
SEMI did not provide its forecast for global spending on semiconductor materials this year. The figure could drop after Gartner Inc predicted an annual contraction of 11.2 percent in global semiconductor revenue this year, due to overcapacity and excess inventory.
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
TECH SECURITY: The deal assures that ‘some of the most sought-after technology on the planet’ returns to the US, US Secretary of Commerce Gina Raimondo said The administration of US President Joe Biden finalized its CHIPS Act incentive awards for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), marking a major milestone for a program meant to bring semiconductor production back to US soil. TSMC would get US$6.6 billion in grants as part of the contract, the US Department of Commerce said in a statement yesterday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major CHIPS Act award to reach this stage. The chipmaker, which is also taking up to US$5 billion
TRADE WAR: Tariffs should also apply to any goods that pass through the new Beijing-funded port in Chancay, Peru, an adviser to US president-elect Donald Trump said A veteran adviser to US president-elect Donald Trump is proposing that the 60 percent tariffs that Trump vowed to impose on Chinese goods also apply to goods from any country that pass through a new port that Beijing has built in Peru. The duties should apply to goods from China or countries in South America that pass through the new deep-water port Chancay, a town 60km north of Lima, said Mauricio Claver-Carone, an adviser to the Trump transition team who served as senior director for the western hemisphere on the White House National Security Council in his first administration. “Any product going
CARBON REDUCTION: ‘As a global leader in semiconductor manufacturing, we recognize our mission in environmental protection,’ TSMC executive Y.P. Chyn said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday launched its first zero-waste center in Taichung to repurpose major manufacturing waste, which translates into savings of NT$1.5 billion (US$46 million) in environmental costs a year. The environmental cost savings include a carbon reduction benefit of 40,000 tonnes, equivalent to the carbon offset of over 110 Daan Forest Parks, the chipmaker said. The Taichung Zero Waste Manufacturing Center is part of the chipmaker’s greater efforts to reach its net zero emissions goal in 2050, aligning with the UN’s 12th Sustainable Development Goal. The center could reduce TSMC’s outsourced waste processing