Since 2012, Taiwan's integrated circuit (IC) industry has experienced positive growth for 11 consecutive years. Since 2014, it has officially surpassed the petroleum, coal products, and chemical raw materials industries to become the leading sector in manufacturing.
In 2023, the direct export ratio reached a staggering 88.1%, making it a crucial contributor to Taiwan's foreign exchange (forex) earnings. In particular, Taiwan's 12-inch wafer foundries hold a significant competitive advantage in advanced process technologies, positioning them as global leaders in the field.
According to Taiwan's Ministry of Economic Affairs (MOEA), the IC industry can be subdivided into IC design, 12-inch wafer foundry, sub-8-inch wafer foundry, DRAM, and others. The 12-inch wafer foundry sector, driven by demand for high-performance computing and AI, has fueled growth in the IC industry's output value.
In 2022, the sector achieved a 45.4% growth, surpassing the NT$2 trillion (approx. US$62.7 billion) mark for the first time and setting a new record at NT$2.4226 trillion. Looking ahead to 2024, the industry is expected to break records once again.
The prosperity of Taiwan's IC industry has drawn the envy and attention of many countries. However, these countries have also realized that achieving high yield rates and reducing costs in IC manufacturing is not simply a matter of purchasing equipment and materials; it requires extensive knowledge and a steady supply of resilient and skilled engineers. For foreign governments aiming to establish a competitive chip manufacturing sector, adopting Taiwan's talent education model may be a key formula for future success.
The success of Taiwan's semiconductor talent education
Recognizing that semiconductor and IC manufacturing talent is a unique competitive advantage for Taiwan, National Taiwan University (NTU) will officially launch the "Global Undergraduate Program in Semiconductors" in September 2024, taught entirely in English. NTU's Shuiyuan Campus building will undergo a complete renovation, supported by donations from TSMC, to provide international students with a four-year experience of semiconductor education and life at NTU.
Among the first class of students in the "Global Undergraduate Program in Semiconductors" are students with SAT scores high enough to be admitted to Harvard University. The second class in 2025 is expected to enroll 50 students, with overseas Chinese and international students each making up half of the class.
The success of Taiwan's semiconductor talent education can be attributed to several factors: low tuition fees, world-leading industry technologies, widespread support from both the government and parents, and the abundant availability of research institutes at universities. Most notably, graduates can secure employment immediately, often at world-class companies, without having to move abroad.
Additionally, salaries in the semiconductor industry are higher than in Taiwan's overall manufacturing sector and significantly better than in the service sector, making it a highly attractive career path for students.
According to interviews conducted by DIGITIMES with electronics engineering (EE) students from NTU, National Tsing Hua University (NTHU), National Yang-Ming Chiao-Tung University (NYCU), as well as conversations with winners of the Macronix Golden Silicon Award, students are highly enthusiastic about the opportunity to work at top-tier IC design and IC manufacturing companies after graduation. Given the high demand for semiconductor talent, students are open to working at either foreign or domestic chip companies.
What it means to study in Taiwan
While there is much to celebrate in terms of technological progress and Taiwan's international recognition due to its semiconductor industry, however, more than 50,000 Taiwanese students study abroad each year. NTU's Global Undergraduate Program in Semiconductors is just launching its first year. The question remains whether Taiwan can leverage its semiconductor expertise to attract top international talent to study in Taiwan.
Those familiar with education and academia know that the US maintains an unshakable position in higher education. Institutions such as MIT, Stanford University, Harvard University, UC Berkeley, and CalTech are renowned for their academic achievements, graduate employability, student-to-faculty ratios, citations, and international student presence.
Taiwan also hosts 3,100 US students, but most are enrolled in short-term language learning programs rather than degree programs related to electrical engineering, electronics, materials science, nanodevices, semiconductors, or other fields closely tied to the IC industry. In fact, when it comes to the number of new fellows in global forums such as the ISSCC and the IEEE, Taiwan's academia lags behind China.
Additionally, at the International Conference on Nitride Semiconductors, Taiwan accounted for only 2% of the 1,000 compound semiconductor papers selected, while China claimed 25%. These indicators suggest that Taiwan's universities and research institutes are not quite at the level to claim themselves as the premier global destinations for studying semiconductor knowledge and skills.
Fortunately, in February 2024, the US National Academy of Inventors (NAI) published its list of the top 100 global universities by the number of US patents granted. Taiwan's NTU, NTHU, NYCU, and National Cheng Kung University (NCKU) were all included in the top 100, providing some validation of Taiwan's academic and research prowess.
Taiwan's academic institutions still maintain visibility in IC design sectors such as analog, digital, power management, memory, and wireless communication, though the glory days of the past may be difficult to replicate. Furthermore, Taiwan is no longer in a position to look down on its Chinese competitors.
Recruiting international students
Recognizing the challenges Taiwan faces in maintaining its semiconductor academic strength, TSMC has taken action. In June 2024, its board approved an NT$4 billion fund to support semiconductor talent education.
Part of this funding will help Taiwan's top universities recruit outstanding professors from institutions like Stanford and UC Berkeley and retain current ones. Another portion will fund the construction or renovation of semiconductor teaching and research facilities. Some funds will also be allocated to help four universities recruit international students.
As Taiwan grapples with an increasingly serious low birth rate issue, the Ministry of Education has made it a priority to encourage universities to attract overseas Chinese and international students, even urging universities to follow the industry's lead by organizing collective recruitment drives abroad and offering scholarships.
If Taiwan wants to address the talent shortage crisis, it must avoid desperate measures. Transforming Taiwan into a top destination for international students and immigrants may be the most effective and direct approach. NTU's Global Undergraduate Program in Semiconductors, which has already attracted students who can be admitted to Harvard, is a promising start and a crucial indicator of Taiwan's ability to continue drawing top international talent in the future.
