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Taiwan IC Design Industry Policy White Paper Proposes Strategies for Competitive Advantage

On March 28, 2023, the Taiwan Semiconductor Industry Association (TSIA) unveiled the Taiwan IC Design Industry Policy White Paper. The document highlights six strategic recommendations to enhance the industry's global competitiveness:
  1. Plan and promote a national-level semiconductor strategy
  2. Allocate budgets proactively to strengthen the driving force behind the industry
  3. Expand the cultivation of IC design talent by attracting overseas talent
  4. Re-examine the policy of foreign companies setting up R&D centers in Taiwan to align with the country's interests
  5. Strengthen the mastery and layout of core technologies in IC design
  6. Assist companies in integration and internationalization to promote industrial upgrading
The Taiwan IC Design Industry Policy White Paper Release Conference was held on the same day as the white paper's release. Senior executives from major IC design companies, including MediaTek, Realtek, Novatek, Phison, and Himax, participated in a panel discussion to discuss the proposed strategies.

MediaTek Chairman Cai Mingjie voiced his concerns about the challenges facing Taiwan's IC design industry. He highlighted the potential impact of the United States' BIS ban and its effect on local resources that have flowed to mature process ICs. He stressed the need for the government to adjust national industrial policies and resources to meet the industry's evolving needs, particularly regarding talent cultivation.

Cai Mingjie urged the government to launch a comprehensive "Taiwan Chip Act" that focuses on the entire semiconductor ecosystem, including IC design and downstream system products, applications, ecosystems, software, and other aspects. He emphasized that talent cultivation requires short-, medium-, and long-term strategic adjustments and that the government must plan policies and execute them with determination.

The Taiwan IC Design Industry Policy White Paper proposes sensible strategies to strengthen Taiwan's position in the global semiconductor market. However, the industry faces several challenges that require thoughtful and strategic government action to ensure its continued success.
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