Pingtung breaks ground on Taiwan's 1st semiconductor supply chain park

Taipei, June 12 (CNA) Construction of Taiwan's first semiconductor supply chain park started in the Pingtung section of the Southern Taiwan Science Park (STSP) on Friday, marking a milestone in the semiconductor industry's efforts to build a cluster in the county, according to the STSP bureau.

The special semiconductor supply chain zone has been planned by Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and will cover an area of about 28 hectares, the bureau said.

TSMC and seven semiconductor suppliers, including integrated system supplier Marketech International Corp. and volatile organic gas treatment provider Desiccant Technology Co., held the groundbreaking ceremony.

The event was attended by President Lai Ching-te (賴清德), TSMC Chairman C.C. Wei (魏哲家), Pingtung County Magistrate Chou Chun-mi (周春米), and National Science and Technology Council Minister Wu Cheng-wen (吳誠文).

Addressing the ceremony, Lai said Taiwan needs balanced industrial development and so is building a semiconductor corridor in the south, from Chiayi and Tainan to Kaohsiung and Pingtung, with Pingtung expected to establish the first special semiconductor supply chain zone in the country.

The government will continue to provide stable water, electricity, land and talent to back Taiwan's industrial base, thereby enabling the country to build a sustainable industrial ecosystem and transform itself into a global AI development hub, Lai said.

TSMC has lent its full support to the special semiconductor supply zone, indicating the contract chipmaker's determination to continue to invest in Taiwan and deepen its roots in the country, Lai added.

Although TSMC continues to expand domestically, the company has also extended its global reach by building production sites overseas, which is expected to allow Taiwan to reap more benefits, Lai noted, referring to the company's ongoing massive investments in the United States, Japan and Germany.

According to Lai, Wei previously planned to visit the U.S. but postponed his plan to participate in the groundbreaking ceremony, showing TSMC's support for the semiconductor supply chain zone.

In response, Wei said that without help from partners in the supply chain, TSMC would not have become the top chipmaker in the world.

Wei expressed gratitude to Pingtung County for its assistance in providing the land on which the semiconductor supply chain zone will be built, thereby allowing TSMC's suppliers to grow over the long term, which is critical to the chipmaker.

While sufficient water, electricity and land are critical, Wei also urged Pingtung County to raise its population and expand education resources as a shortage of talent could also be a potential serious obstacle to Taiwan's industrial development.