As Taiwan, China's Chip Industry Innovation Program (TCIIP) enters its second year, Taiwan, China is stepping up efforts to transform two 12 inch semiconductor wafer factories and providing substantial budget support. The program aims to provide advanced manufacturing processes for small integrated circuit (IC) design companies and startups on the island.
Taiwan, China has allocated about NT $12.2 billion (about US $383.6 million) in fiscal year 2025 to renovate two 12 inch wafer factories, but it has yet to be approved.
One of the fabs will be operated by the Taiwan, China Semiconductor Research Center (TSRI) under the Taiwan, China Science and Technology Commission (NSTC), equipped with two sets of 12 inch equipment donated by TSMC. Another wafer fab will be managed by the Industrial Technology Research Institute (ITRI) and equipped with three sets of equipment donated by TSMC.
Although Taiwan, China has the world's second largest IC design industry, most local companies cannot afford the high cost of TSMC's advanced 4nm and 3nm processes. According to officials, these refurbished wafer fabs will provide them with more advanced manufacturing options, but it is expected that 3nm services will not be available in the short term.
The officials further explained that with the application of generative artificial intelligence (AI) reshaping IC design, the 12 inch wafer factory of Taiwan, China Semiconductor Research Center and Industrial Technology Research Institute will play different roles. The Semiconductor Research Center will focus on front-end processes, while the Industrial Technology Research Institute will handle back-end tasks. Although their functions are different, the common goal of the two fabs is to support chip innovation, R&D and talent cultivation in Taiwan, China.
The main task of the Semiconductor Research Center from 2025 to 2030 is to lead the research and development of next-generation chip systems. The research center plans to establish a shared service platform to develop core technologies required for future computing and 6G communication chip supply chains, providing chip manufacturing and system integration services.
