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Report highlights opportunities for UK tech across Taiwan’s semiconductor sector

Report highlights opportunities for UK tech across Taiwan’s semiconductor sector

We’ve just published our latest report from the UK-APAC Tech Growth Programme, revealing huge opportunities for UK companies across the semiconductor industry in Taiwan.

You can download the report now for free, here.

Taiwan dominates many parts of global chip design and manufacturing, but the report says it is seeking to strengthen its position further in the face of a constrained energy supply, talent outflow and strong competition from China and South Korea. This opens the door to UK companies with innovative solutions and an aspiration to expand globally.

We’ve published this report – alongside several others you can read here – as part of the UK-APAC Tech Growth Programme, the initiative we’re running on behalf of the UK Government to accelerate the growth of innovative British tech companies in the APAC region.

The semiconductor industry makes up around 12% of Taiwan’s GDP and is valued at £74.7 billion, according to the Taiwan Semiconductor Industry Association. The report says Taiwanese companies account for 78% of foundry (manufacturing) revenue, 21% of integrated circuit (IC) design revenue and 52% of assembly, test and packaging (ATP) revenue globally.  It is the island’s key industry and its growth is being accelerated by increased demand for chips, driven in turn by advancements in AI, 5G, 6G, electric vehicles and High Performance Computing.

However, the report also highlights that, while Taiwan is strong in the manufacturing and ATP segments of the industry – known as ‘mid-stream’ - it relies on international companies for many ‘upstream’ technologies.  These support the production of raw materials and components used in the manufacturing process such as silicon wafers, chemicals, gases and photomasks.  It also relies on international technologies to facilitate the ‘downstream’ stage, during which its chips are integrated into end products such as mobile phones and cars.

Intellectual property (IP) is an area of particular relevance to UK semiconductor firms according to Stewart Randall (pictured), Head of our Electronics & Embedded Software practice and author of the report.  He argues that well-established UK chip IP companies such as ARM and Imagination are highly regarded in Taiwan, and this confers credibility onto smaller British IP companies seeking to strike deals.

The report also identifies other areas that represent immediate opportunities for UK firms in Taiwan. They include:

  1. Compound semiconductors - typically incorporated into technologies such as telecommunications, optoelectronics and solar cells. Taiwan has a nascent midstream compound semiconductor industry but needs world-leading technologies, such as those being developed by many UK firms
  2. Manufacturing equipment – Taiwan operates the largest foundries in the world but relies on imports of semiconductor manufacturing equipment. A number of UK companies have already forged successful commercial relationships in this area
  3. Resource management – Taiwan is keen to expand its manufacturing capacity but is struggling to balance the water required by its foundries with the needs of agriculture and the general population. It is also seeking ways to optimise its energy usage, adopt cleaner and renewable energy sources and implement energy-efficient technologies to reduce its carbon footprint and comply with international sustainability standards.  This presents significant potential for UK tech firms to offer innovative solutions in these fields

Stewart Randall said: “There are few more important markets than the semiconductor industry and Taiwan is right at its heart. Ambitious UK chip firms simply must have a presence in this market, and we hope this report will help them understand the opportunities open to them.”

He added: “The Taiwanese government and industry welcome overseas technologies that can help grow the island’s position as the world’s semiconductor leader. While breaking into Taiwan can seem challenging, the UK-APAC Tech Growth Programme can make it easier.  As a first step, the programme can help companies to understand Taiwan’s specific needs and the competitive landscape. It can then support them in starting to build connections, generate leads, sign partnerships and secure sales deals.”

The UK-APAC Tech Growth Programme – backed jointly by the Department for Business & Trade and Department for Science, Innovation & Technology – is aimed at scaleups throughout the UK with significant international growth potential.

The programme helps UK tech companies expand in South Korea, Japan, Singapore, Vietnam, Malaysia, the Philippines, Thailand, Indonesia, Australia and New Zealand, as well as Taiwan.

Our teams on the ground in Asia Pacific identify participants’ business opportunities, provide market entry advice and help them sell their products, forge partnerships and raise investment.

For more information and to apply to join the UK-APAC Tech Growth Programme, click here

You can also contact our Programme Manager, Tom Miller, at


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