Opportunities for UK companies across the semiconductor industry in Taiwan are revealed in a new report, published as part of the UK-APAC Tech Growth Programme.

Compound semiconductors offer immediate scope, according to the business development consultancy Intralink, which delivers the UK-APAC Tech Growth Programme on behalf of the UK Government.

In the report, Intralink says Taiwan has a nascent midstream compound semiconductor industry but needs world-leading technologies, such as those being developed by many UK firms.

The semiconductor industry makes up around 12 percent of Taiwan’s GDP and is valued at £74.7 billion, according to the Taiwan Semiconductor Industry Association. The report says Taiwanese companies account for 78 percent of foundry (manufacturing) revenue, 21 percent of integrated circuit (IC) design revenue and 52 percent of assembly, test and packaging (ATP) revenue globally. It is the island’s key industry and its growth is being accelerated by increased demand for chips, driven in turn by advancements in AI, 5G, 6G, electric vehicles and High Performance Computing.

However, the report also highlights that, while Taiwan is strong in the manufacturing and ATP segments of the industry – known as ‘mid-stream’ – it relies on international companies for many ‘upstream’ technologies such as the production of raw materials and components used in the manufacturing process such as wafers, chemicals, gases and photomasks. It also relies on international technologies to facilitate the ‘downstream’ stage, during which its chips are integrated into end products such as mobile phones and cars.

Intellectual property (IP) is an area of particular relevance to UK semiconductor firms according to Stewart Randall, head of Intralink’s Electronics Practice and author of the report. He argues that well-established UK chip IP companies such as ARM and Imagination are highly regarded in Taiwan, and this confers credibility onto smaller British IP companies seeking to strike deals.

As well as compound semiconductors, the report highlights manufacturing equipment, and resource management as presenting significant potential for UK tech firms to offer innovative solutions. The report can be dowloaded here.

The UK-APAC Tech Growth Programme – backed jointly by the Department for Business & Trade and Department for Science, Innovation & Technology – is aimed at scaleups throughout the UK with significant international growth potential.

The programme helps UK tech companies expand in South Korea, Japan, Singapore, Vietnam, Malaysia, the Philippines, Thailand, Indonesia, Australia and New Zealand, as well as Taiwan.