Taiwan chip making a priority for domestic firms, in-country

Tower Semiconductor

News today in the ongoing semiconductor races, amid a global shortage of chips, new reports indicate that some moves may be coming to relieve pressure on the market, despite ongoing protectionism in Taiwan’s production strategy.


First, Reuters reports that Taiwan’s economic minister has suggested domestic companies will not invest in making more chips in the European Union, but will instead continue to work on domestic production.


Also, we have breaking news that United Microelectric Corporation, which is somewhat of a dark horse Taiwan producer typically overshadowed by TSMC, is spending $3.59 billion to expand capacity with a staggering future investment estimate of up to $150 billion.


The initiative, which will reportedly take place at the Tainan Science Park in the Sinshih, Shanhua and Anding Districts of Tainan City is slated for production beginning in the second quarter of 2023. With a total area of 2,565 acres, the Tainan Science Park is part of the Southern Taiwan Science Park.


Reuters also reveals that UMC customers will put down deposits in order to secure long-term deliveries.


We’ll see whether UMC’s initiative helps to alleviate some of the scarcity that consumers are seeing in international markets. Auto makers are having a hard time outfitting new computerized vehicles, and gaming companies need ships for graphics rendering and everything else that powers new generations of games, NFTs and much more. And then there’s cryptocurrency mining…


As we’ve previously reported, some of the increasing pressure on semiconductor manufacturing happened due to trade wars and protectionist policy on the part of China and the United States, both of which contain industry leaders jockeying for position in an interconnected globalized marketplace.


Will new production efforts do what world leaders are hoping they will? If you’re in technology and concerned about semiconductor shortages, UMC might be one company to keep an eye on.