Taiwan semiconductor leaders urge stronger material supply chains

Leaders of the semiconductor industry are calling for a strategic shift toward strengthening the semiconductor materials supply chain in Taiwan to mitigate risks of material shortages and high supplier concentration.

During the SEMI Semiconductor Materials Alliance inauguration, GlobalWafers Chairperson Hsu Hsiu-lan noted that the industry is moving beyond simple process miniaturization. She emphasized that advanced packaging and diverse material applications are becoming critical. Hsu advocated for a collaborative model where material providers, wafer foundries, and equipment manufacturers work together from the earliest stages of development to define new standards.

ASE Group Vice President Huang Yi-tsung highlighted the vulnerabilities caused by the high concentration of key materials among a few global suppliers. He noted that during shortages, even well-funded companies struggle to secure supply, which can halt entire production lines. Huang aims to build a robust domestic material ecosystem in Taiwan to provide secondary and tertiary sources, reducing reliance on overseas suppliers and ensuring Taiwan remains indispensable to the global semiconductor industry over the next two decades.