In the recent Taiwan Industry Development and Future Trends Report, President Mr. Shen, a key advisor to the Presidential Office, highlighted the critical importance of enhancing the semiconductor industry ecosystem. Two key development focuses were emphasized: achieving autonomy in critical materials and localizing material supply chains.

WaferChem, a leading player in the industry, has successfully leveraged its proprietary technology to overcome supply bottlenecks from Japan, marking the dawn of a new era in Taiwan's autonomous production of critical materials for ABF (Advanced Build-Up Film) carrier boards. This breakthrough brings renewed hope to Taiwan's ABF board industry, a sector dominated by three major players - Unimicron, Nan Ya, and Kinsus, collectively contributing 45% of the global market with an annual production value of NT$150 billion.

Despite the industry's significant contributions, the production of a crucial ABF board component, the build-up film, relies heavily on Japanese imports, with a staggering 99% dependency. This vulnerability poses a serious threat to the industry, emphasizing the urgent need for domestically produced build-up materials for ABF boards.

The consequences of a single-source dependency became evident when disruptions in Japanese supplies occurred. In such instances, the production of ABF boards comes to a halt, subsequently impacting advanced packaging processes like Taiwan's CoWoS (Chip-on-Wafer-on-Substrate), leading to delivery delays. The situation is nothing short of dire.

However, for those concerned about domestic production capabilities, WaferChem's technological breakthrough offers a ray of hope. By breaking Japan's monopoly on ABF materials, WaferChem not only marks a significant leap forward in technology but also becomes a key enabler for Taiwan to establish a localized supply chain. This achievement lays a solid foundation for the development of Taiwan's ABF board industry, encouraging more enterprises to actively engage in local technological research and development, thus realizing the substitution of imported materials with domestically produced ones.

The birth of Taiwan Build-Up Film (TBF) symbolizes the success of Taiwan's independent technological development and a proactive commitment to localizing supply chains. This achievement injects new vitality into Taiwan's semiconductor industry.

The Economic Ministry, Industrial Bureau, and National Development Council are actively supporting initiatives related to ABF boards, emphasizing the importance of building a resilient and self-reliant supply chain. Key players in the ABF board industry, including Unimicron, Nan Ya, and Kinsus, are taking the lead in supporting domestic development, aligning with the government's vision for a locally-driven semiconductor sector.

In conclusion, the breakthrough achieved by WaferChem not only strengthens Taiwan's position in the semiconductor industry but also serves as a beacon for future developments in autonomous material production, setting the stage for a more robust and resilient semiconductor ecosystem in Taiwan. #TeamTaiwan #SemiconductorIndustry #LocalInnovation