News
Taiwan semiconductor equipment output projected to reach NT$200 billion by 2026
Friday, January 2, 2026 at 01:07 AM
Taiwan's Ministry of Economic Affairs forecasts local semiconductor equipment output will reach NT$200 billion in 2026, supported by a NT$5 billion five-year R&D investment. The initiative focuses on advanced technologies including panel-level packaging and silicon photonics, aligning production with requirements from major manufacturers like TSMC and ASE.
Context
Taiwan’s semiconductor equipment industry is projected to reach an annual output of NT$200 billion (US$6.4 billion) by 2026, marking a steady increase from the NT$180 billion expected in 2025. To sustain this momentum, the government is investing NT$5 billion over five years into research and development, specifically targeting 29 categories of chip-making machinery. This strategic push aims to localize the supply chain and ensure Taiwanese vendors can meet the escalating demands of the global AI and high-performance computing markets.
The investment focuses on cutting-edge sectors like panel-level-packaging (PLP) and silicon photonics (SiPh), which are essential for future chip architectures. By aligning these R&D efforts directly with the roadmaps of industry giants TSMC and ASE, Taiwan is fostering a more integrated ecosystem. For investors, this signals a shift toward higher-value domestic equipment production, potentially reducing long-term capital expenditure volatility for major foundries while creating new growth opportunities for specialized local suppliers within the AI hardware stack.
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