MOEA eyes semiconductor sector investment growth

2016/01/28

Taiwan’s semiconductor sector is expected to lead the way in attracting NT$1.4 trillion (US$41.7 billion) in private investment this year, up from NT$1.34 trillion in 2015, according to the ROC Ministry of Economic Affairs Jan. 26.

The MOEA will achieve this target by encouraging semiconductor firms to boost investment in R&D, lift production and obtain key technologies. This is expected to help these outfits strengthen advantages in design, manufacturing and packaging, as well as consolidate Taiwan’s position in the global supply chain.

At the same time, expanded production and R&D by such firms as Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp., as well as panel-makers AU Optronics Corp. and Innolux Corp, will ensure the MOEA reaches its investment goal.

Hsiao Chen-jung, deputy director of the MOEA Industrial Development Bureau, said last year’s performance of the semiconductor sector makes it the ideal candidate to carry the bulk of the private investment load.

TSMC made investments of nearly NT$180 billion in 2015 at various sites around Taiwan, mainly focusing on the expansion and renewal of wafer production facilities, Hsiao said. UMC came in next with NT$49.7 billion injected into its Hsinchu and Tainan fab, he added.

According to Hsiao, AUO spent NT$40 billion on upgrading its low-temperature poly-silicon production lines to 6 and 8.5 generations, while Innolux invested NT$35 billion in developing new technologies and processes.

Regarding integrated circuit design, MediaTek Inc. shelled out NT$20.2 billion last year on establishing Internet of Things infrastructure and testing equipment.

This healthy state of affairs is giving the MOEA confidence in the performance of Taiwan’s electronics industry and continued growth in related expenditures.

But given the uncertain global economic outlook going forward, Hsiao said the MOEA is seeking new private investment drivers spanning biopharmaceuticals, cloud computing and mobile broadband Internet.

“We also have high hopes for robust demand in the solar power sector and envision accumulated total investments of NT$480 billion by 2030.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=241730&ctNode=2194&mp=9)