Energy is Vital to Taiwan’s Semiconductor Component Suppliers’ Competitiveness
As the world enters the era of AI and digitalization, demand for semiconductors continues to rise, bringing with it a high demand for electricity. As a high-energy-consuming industry, Taiwan’s semiconductor component supply chain is at a critical juncture for rapid transformation. Especially with increasing demands for renewable energy and net-zero emissions, the effective use of green energy will directly impact Taiwan’s semiconductor component suppliers’ competitiveness in the global market.
Taiwan is a global hub for the semiconductor industry, with manufacturing and semiconductors as pillars of the economy. Manufacturing accounts for nearly 60% of GDP, while the semiconductor industry contributes 18%. However, Taiwan relies on imports for approximately 98% of its energy. With geographical constraints limiting cross-border power support, enhancing energy autonomy is essential. Particularly, in the context of global tech giants driving net-zero supply chain goals, early achievement of energy transition will provide a significant advantage for semiconductor component suppliers.
The Green Challenge in the Global Semiconductor Market
To reduce carbon emissions, major tech companies have started demanding green energy across their supply chains. For example, Apple requires its supply chain to achieve 100% green energy by 2030, while Google has set a 2030 net-zero target. In this trend, leading Taiwanese semiconductor companies like TSMC have set targets to use 60% renewable energy by 2030 and 100% by 2040. Component manufacturers in the semiconductor supply chain must meet high standards and actively respond to global carbon reduction initiatives.
Semiconductor component suppliers play a crucial role in this transition by providing materials and components for downstream manufacturers. In terms of carbon footprint, energy use, and environmental sustainability, suppliers’ performance is essential for downstream manufacturers to achieve net-zero targets. As semiconductor giants and high-tech industries drive energy transformation, the progress of component suppliers will directly affect the effectiveness of the entire industry chain.
The Necessity of Energy Independence and Green Transition in Taiwan
Taiwan’s energy structure urgently needs optimization. To achieve energy independence and enhance industrial competitiveness, the Taiwanese government is actively promoting energy transition. In 2016, the Executive Yuan passed the “Green Energy Technology Industry Innovation Promotion Program,” focused on “Energy Creation, Energy Storage, Energy Conservation, and System Integration” to drive renewable energy development, attract large-scale investments, and create more jobs. The implementation of this program offers two significant advantages for semiconductor component suppliers: reducing dependence on imported energy and utilizing policy support to accelerate green transformation, enhancing the supply chain’s adaptability to the global market.
Component manufacturers in Taiwan’s semiconductor supply chain can leverage government policy support to gradually increase renewable energy applications. By reducing carbon, improving energy efficiency, and meeting the environmental needs of international clients, companies can lower operational costs and enhance their international reputation and market share. Particularly in markets like the EU, which holds high environmental standards, companies demonstrating strong environmental commitments gain a competitive edge.
Expanding Opportunities in Renewable Energy and Partnerships
In Taiwan’s energy transition process, industry and government collaboration is crucial. Organizations like the SEMI Global Semiconductor Climate Consortium (SCC), SEMI Energy Collaboration, and the Green Energy & Sustainability Alliance (GESA) are actively helping Taiwan’s semiconductor supply chain establish partnerships with renewable energy providers, financial institutions, and government bodies to promote renewable energy adoption and support market growth. Through these collaborative platforms, component suppliers can more easily access renewable energy resources and policy support, enhancing the diversity and stability of energy use and achieving sustainable growth.
Strategic Choices for Semiconductor Component Suppliers
In the face of energy transformation, Taiwan’s semiconductor component suppliers should adopt proactive strategies to achieve the net-zero goals required by the international market while maintaining competitive advantages. Here are some key strategies:
- Increase Renewable Energy Proportion: Gradually increase the proportion of green energy used in factories and processes, such as solar and wind energy. This approach not only meets international market demand but also significantly reduces long-term power costs and enhances the environmental image.
- Introduce Energy Management Technology: Strengthen data monitoring and management of energy use to improve energy efficiency and reduce waste. Utilizing smart grids and energy-saving systems, companies can lower carbon emissions and control energy consumption in production to meet carbon emission requirements.
- Develop Eco-Friendly Materials and Processes: Focus on R&D for green materials and processes to enhance product eco-friendliness. Collaborating with customers to develop new eco-friendly materials can increase supply chain value and open up high-value market opportunities for the company.
- Leverage Government and Industry Alliance Resources: Actively participate in energy transition cooperation programs of industry organizations like SEMI. Utilize policy support and partnership opportunities to swiftly respond to industry trends and international market standards.
Looking to the Future: Opportunities and Challenges in Energy Transition
In an era increasingly emphasizing sustainable development and carbon reduction commitments, Taiwan’s semiconductor component suppliers face significant challenges in energy transition but also gain new business opportunities. With the rising demand for green energy in high-tech industries, component suppliers can enhance their competitive advantage and attract more international partners, gaining a larger market share.
At the same time, as Taiwan and Europe deepen supply chain security cooperation, investing in the EU market will become a crucial strategy for Taiwan’s semiconductor component suppliers. The EU Investment Forum this year highlighted the vision of deep cooperation between Taiwan and Europe in areas such as semiconductors, telecommunications, and AI. This presents a significant opportunity for Taiwanese suppliers aspiring to enter the European market. Through collaboration and technological innovation, Taiwan’s semiconductor component suppliers will become an essential force in the global supply chain amidst the energy transition wave.
In conclusion, energy transition is not only the key to the sustainable growth of Taiwan’s semiconductor industry but also the foundation for semiconductor component suppliers to maintain international competitiveness. As the global market increasingly demands net-zero emissions, component suppliers should actively embrace this trend, leveraging government policies and industry resources to accelerate renewable energy applications and secure a competitive edge in the international market.
📌2024 EU Investment Forum
▪️Date: November 18, 2024
▪️Time: 13:30 – 17:00
▪️Location: Room 101, Taipei International Convention Center
👉Free Registration: https://reurl.cc/YqLXN0
WingYik Technology’s Contributions to Semiconductor Components and Automation Equipment Components
WingYik Technology, as a major supplier in Taiwan’s semiconductor industry, focuses on the R&D and supply of high-precision semiconductor components and automation equipment components, continually promoting green innovation and energy-saving technologies. With its strong technical expertise and highly flexible manufacturing processes, WingYik Technology has played a crucial role in upgrading Taiwan’s semiconductor industry and advancing energy transition.
1. Supporting Localization of High-Precision Semiconductor Components
With advancements in semiconductor processes and the growing demand for AI applications, high-precision and durable components have become essential. WingYik Technology offers a wide range of semiconductor components, from thermal modules and thin-film materials to precision mechanical parts, all meeting the demands of cutting-edge technology. Additionally, WingYik Technology actively participates in the localization of semiconductor component production, reducing Taiwan’s reliance on imported materials and enhancing the autonomy and stability of the supply chain. This localization shortens lead times, mitigates supply risks, and significantly reduces carbon emissions, supporting Taiwan’s green supply chain goals.
2. Providing Intelligent Automation Equipment Components
WingYik Technology also demonstrates excellence in the field of automation equipment components. With the increasing demand for automation equipment due to the precision required in semiconductor processes, WingYik Technology provides components such as high-precision motors, servo control systems, and sensors, which meet the synchronized multi-process requirements of production, greatly enhancing production efficiency. The automation components from WingYik Technology are characterized by intelligence and energy efficiency, making production systems more efficient and stable while effectively reducing energy consumption, achieving dual energy-saving effects.
3. Actively Embracing Energy Transition to Enhance Green Competitiveness
Recognizing the global increase in renewable energy demand, WingYik Technology, as a component supplier to the semiconductor industry, actively embraces energy transition and promotes green manufacturing. To this end, WingYik Technology is committed to increasing the proportion of renewable energy in its processes, implementing energy-saving equipment, and optimizing energy management systems within its factories to achieve carbon reduction targets. Additionally, by participating in platforms such as the SEMI Global Semiconductor Climate Consortium (SCC), WingYik Technology shares green technology experiences with industry partners, enhancing its international brand competitiveness and promoting environmental upgrades across the entire industry chain.
4. Meeting Global Demand with R&D and Customized Solutions
As Taiwan’s semiconductor industry accelerates its expansion into the global market, WingYik Technology offers a variety of high-quality semiconductor components and automation equipment components that meet international standards. With resources invested in R&D, WingYik Technology drives product innovation and upgrades. The company provides customized solutions based on customer requirements to meet diverse process needs in the semiconductor industry, enhancing the green value of products, helping customers reduce their carbon footprint, and aligning with international green supply chain standards.
5. Enhancing the Resilience and Sustainability of the Supply Chain
As a global semiconductor hub, Taiwan’s supply chain stability is crucial. With exceptional production management and high-quality control, WingYik Technology ensures each batch of components meets high-quality standards, responding quickly to market changes and customer demands. The stability of WingYik Technology’s component supply effectively enhances the resilience of the industry chain, mitigates external risks, and contributes to sustainable development through energy-efficient production and carbon reduction measures.
In the face of rising global semiconductor demand and the growing pressure for energy transition, WingYik Technology actively responds to market changes by providing high-quality semiconductor components and automation equipment components while continuously advancing green transformation. As a key component supplier to the semiconductor industry, WingYik Technology not only strengthens Taiwan’s supply chain competitiveness but also drives the sustainable development of the industry, contributing to Taiwan’s role as a global semiconductor hub.
