Chip design to serve as engine for boosting Taiwan's chip industry

Taipei, July 21, 2005 (CENS)--The Ministry of Economic Affairs (MOEA) plans to cultivate three to five chip design houses into the sizes of MediaTek Inc. and Sunplus Technology Co., Ltd., Taiwan's top two chip design houses, so that the island's chip industry can achieve an ambitious goal set for 2012.

The government plans to boost the island's chip-making revenue to NT$2 trillion (US$64.5 billion at US$1:NT$31) in 2012. Its studies show that the design sector has the largest room for growth among all chip industrial sectors.

To carry out the ministry's plan, a design center at the Nankang Software Park has prioritized the work to introduce U.S. leading-edge technologies, talents and companies into the park. So far, the center has convinced four Silicon Valley companies good at system-on-chip (SoC) designs to set up operations in the park. Taiwan's insiders of the industry estimate a move-in heat to occur by the end of this year thanks to the government's solicitation efforts.

The government estimates the island's semiconductor industry to have score total revenues of NT$1.2 trillion (US$40.9 billion) this year, up from last year's NT$1 trillion (US$32.2 billion). MOEA officials estimate Taiwan's semiconductor industry will need seven to eight years to achieve an annual revenue goal of NT$2 trillion after spending 20 years accomplishing the NT$1 trillion goal.

The officials point out that the chip design sector will be much helpful in accomplishing the second trillion goal. Currently, the design sector accounts for 25% to 26% of Taiwan's chip industry by revenue, with the manufacturing segment constituting over half.

The software park's design center sent its executives in the half this year to major U.S. chip-design bases including Silicon Valley to solicit investments in the center. So far, around 40 SoC design houses have set up operations at the center.

To become more attractive, the center will connect with the Hsinchu Science-based Industrial Park's research and development center, the National Sun Yat-sen University's incubation center and Central Taiwan Science Park through network.