Electronics Industry Production/Test Equipment

 

Taiwan

Overview                                                                               

 

                                            2004                 2005                 2006 (estimated)

Total Market Size            $11,548            $10,813            $10,640

Total Local Production           590                    500                   480

Total Exports                         303                    247                   240

Total Imports                    11,261               10,560              10,400

Imports from the U.S.         4,083                 3,015                2,970

Notes:  Figures are in millions of USD.  The exchange rates (1USD=NTD) were NT$33.48 for 2004, NT$32.15 for 2005, and NT$32.50 for 2006 (estimated).  The statistics are unofficial estimates.

 

Taiwan’s electronics industry continues to advance towards newer and more sophisticated technologies, such as 12-inch wafer fabrication, 7.5 or higher generation flat panel displays (FPDs), large-sized LCD TVs, and wireless communications.  Capital spending for semiconductor and FPD production capacity are expected to be particularly significant for the next few years.  Market expansion will thus be primarily fueled by an anticipated increase in demand for imported advanced EIP equipment by the two major user groups -- semiconductor and FPD manufacturers.  These two user groups, which consumed about 40-45% of total 2005 EIP sales each, have plans to invest approximately US$30-40 billion in more than 10 ongoing and proposed capacity expansion projects over the 2007-2008 period.  The trend towards more advanced finished electronic and component production will also require increasingly high-end systems.  Import demand for EIP equipment, accounting for more than 80% of the entire market, will be promising over the next two to three years.  As a major source of specialized EIP equipment, U.S. firms will find excellent sales opportunities given their products’ superior performance, high reliability, and durability.

 

Best Products/Services                          

 

·            Chemical vapor deposition apparatus and parts for semiconductor production

·            Machine tools for dry-etching on semiconductors

·            Grinding, polishing and lapping machines and parts for processing of semiconductor wafers

·            Apparatus for wet etching, developing, stripping or cleaning semiconductor wafers and flat panel displays

·            Physical deposition apparatus and parts for semiconductor production

·           Rapid heating apparatus and parts for semiconductor wafer production

·           Ion implanters and parts for doping semiconductor materials

·            Instruments, apparatus, parts and accessories for measuring or checking semiconductor wafers or devices

·           Optical instruments, appliances, parts, and accessories for inspecting photomasks or semiconductor devices

 

Opportunities                                       

To expand production capacity, local semiconductor firms plan to spend more than US$10-15 billion in six ongoing and proposed investment projects by constructing 12-inch wafer plants and upgrading existing facilities in 2007-2008 to increase their market competitiveness worldwide.  Meanwhile, investment by FPD makers is expected to exceed US$20 billion, of which US$15 billion will be allocated to build seven new panel plants, according to the Industrial Development Bureau (IDB).  The recent rapid expansion in the semiconductor and FPD sectors has induced respective up- and down-stream firms to increase investment in expanding output.  For instance, glass substrate makers are also investing over US$3.1 billion while color filter firms have plans to invest about US$3.0 billion in new facilities.  In addition, communications and consumer electronic manufacturers are adding new product lines to produce more high-value-added items, such as mobile phones and LCD TVs, to gain profits from expanding worldwide demand. 

 

Resources      

 

Industry Technology Research Institute (ITRI): http://www.itri.org.tw

 

Industrial Development Bureau, MOEA: http://www.moeaidb.gov.tw

 

Taiwan Semiconductor Industry Association: http://www.tsia.org.tw

 

Taiwan Electrical and Electronics Manufacturers’ Association: http://teema.org.tw

 

Information on major trade shows in Taiwan that are related to the electronics industry is available at the website http://www.taipeitradeshows.com.tw.  Firms interested in the relevant trade shows should contact the Taiwan External Trade Development Council at taitra@N0SPAM.taitra.org.tw for detailed information.

 

U.S. firms wishing to learn more about the EIP market are also encouraged to contact CS Taiwan Senior Commercial Specialist, Shirley Wang, at shirley.wang@N0SPAM.mail.doc.gov or visit the website http://www.buyusa.gov/taiwan/en.