Taiwan looks to chip design as growth engine, says report

Peter Clarke
(07/21/2005 8:38 AM EDT)

  LONDON — Taiwan’s Ministry of Economic Affairs plans to help develop three to five major fabless chip companies to help the country achieve economic goals set for 2012, according to a report on the Taiwan government’s “e-gov” website.

The government is looking for the island's chip-making revenue to increase to NT$2 trillion (about $63 billion) in 2012 and believes having achieved success in semiconductor manufacturing, the better opportunities for growth lie in chip design, the report said. The country intends to cultivate three to five companies to the level of MediaTek Inc. and Sunplus Technology Co. Ltd., Taiwan's top two chip design houses, the report said.

MediaTek Inc. was ranked as the 47th largest semiconductor company in the world in 2004 with sales of $1.17 billion by market research company IC Insights (see March 14 story).

To help reach its 2012 economic goal a design center has been set up at Nangang Software Park with the intention to attract people, technologies, and companies from the U.S., the report said. So far, around 40 system-on-chip design companies have set up operations at the center including four from the U.S., the report said.

The island's semiconductor industry is expected to achieve revenues of NT$1.2 trillion (about $40 billion) in 2005 up 20 percent on 2004, the report said. Design accounts for 25 percent and manufacturing over half, the report said.