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How did Taiwan, a small island nation, take over the chip industry? Once you get to know the system they have set up, things will fall into place!

  • April 17, 2024
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Semiconductors, namely chips, have become indispensable elements of our modern world. the key to our digital world. Although they seem quite small, the fact that they are the

How did Taiwan, a small island nation, take over the chip industry?  Once you get to know the system they have set up, things will fall into place!

Semiconductors, namely chips, have become indispensable elements of our modern world. the key to our digital world. Although they seem quite small, the fact that they are the fourth most traded commodity in the world proves just how big an impact these small objects actually have.

Taiwan, on the other hand, continues its leadership in the industry as an island that has become a de facto chip factory. More than 60% of chip production Taiwan is creating a global impact with its strategic expertise and logistics capacity in this area. How did Taiwan come to dominate this sector?

The adventure of the Taiwanese chip industry begins in 1974.

Taiwanese chip

At that time, due to the difficult political and economic conditions, the government decided to reorganize the economic structure of the island. Taiwan Technology Research Institute (ITRI) It’s drying.

ITRI, which plays an important role in the development of Taiwan’s technology industry, major contribution to the country’s economy offers.

Chip development studies have begun in Taiwan first chip company This leads to laying the foundations of United Microelectronics Corporation.

However, founded by Morris Chang in 1987 Taiwan Semiconductor Manufacturing Corporation (TSMC) It manages to become Taiwan’s real semiconductor giant.

Taiwan Semiconductor Manufacturing Corporation (TSMC) is responsible for approximately 54% of global semiconductor chip production!

tsmc

Apple, Qualcomm and Nvidia Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest foundry serving major technology companies such as 54% It creates.

In other words, the economy of Taiwan, the center of chip production, This sector is based on exports It wouldn’t be wrong to say that either.

By 2022, Taiwanese chip exports will reach approximately 1.5 million euros This corresponded to 25%.

Let’s make a comparison to compare the size of the ratio we are talking about.

chip

If we look at a major industry such as the oil industry, the country with the highest production rate among the countries operating in this sector has 18.5%!

Taiwan on chips, according to The Economist owns 60% of this industry!

Thanks to both its skilled workforce and government support, Taiwan has become a leader in this sector.

Taiwanese chip

By paying competitive wages to its engineers and technicians, Taiwan has become an attractive country for qualified workers. The government also encourages R&D studies paved the way for the development of the sector.

Taiwan, which has strengthened its place in the sector with several institutes and research centers established in this regard, It is literally the chip capital of the world!

Taiwan dominates the chip industry in every respect. What if we even said that Nvidia and AMD are cousins?

AMD and Nvidia

Taiwan’s influence in this sector is undeniable. Two rival companies, for example The founders of Nvidia and AMD are also Taiwanese.

Nvidia CEO Jensen Huang and AMD CEO Lisa Su first cousin!

This rival duo at family dinners We are very curious what you are talking about!

Source: Business Insider, CBNC, The Economist, Engelbergs

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