AI demand highlights Taiwan's semiconductor capabilities: Lai

Taichung, Oct. 15 (CNA) President Lai Ching-te (賴清德) said Thursday that as global demand for artificial intelligence (AI) grows, the world will increasingly rely on Taiwan for its comprehensive semiconductor capabilities and trusted supply chain.

Speaking at the inauguration of U.S. memory chipmaker Micron Technology Inc.'s new advanced assembly and testing facility in Taichung, Lai said Taiwan combines the world-leading advanced chip manufacturing and packaging technologies of Taiwan Semiconductor Manufacturing Co. (TSMC) with Micron's continued investment in advanced memory.

The more the world needs AI, the more it needs Taiwan -- a trusted partner with complete industrial capabilities, Lai said.

The new facility, completed in just over a year, demonstrates Micron's commitment to Taiwan and will strengthen both the company's global competitiveness and Taiwan's semiconductor ecosystem, he added.

Micron has invested more than NT$1.4 trillion (US$43.18 billion) in Taiwan over the past three decades, reflecting its confidence in the country, Lai said.

He said chips and memory are both indispensable in the AI era, adding that the new facility will enhance advanced packaging and testing capabilities for high-bandwidth memory (HBM) to meet rising global AI demand.

Lai noted that the government has extended its three major Taiwan investment incentive programs through 2027, expanding eligibility to overseas Taiwanese businesses and foreign companies while providing financing support and one-stop services to help address land, water and electricity needs.

He added that Micron has also secured funding under the Ministry of Economic Affairs' A+ Industrial Innovation R&D Program to accelerate HBM research and development in Taiwan, boosting investment and production capacity.

Lai also reiterated the government's "dual-engine" strategy of developing both high-tech and traditional industries, saying it aims to help precision manufacturers upgrade technologies and integrate into high-tech supply chains.

He called for closer cooperation between central and local governments, employers and workers to foster a healthy industrial environment, saying harmonious labor-management relations are essential to sustainable business growth.