Taiwan’s chipmakers now have a SEMI-backed group watching over their materials lifeline. The alliance was unveiled August 21, with demand from advanced nodes and next-generation packaging straining gas and chemical supply.
Taiwan has been the biggest buyer of semiconductor materials for 16 straight years, spending about $21.7B in 2025, or 30 percent of the worldwide bill of $73.2B, SEMI data shows.
SEMI Taiwan president Terry Tsao tied the alliance to the industry’s advance toward 2nm production and advanced packaging, which is lifting demand for gases, chemicals and raw materials. He framed the group as a way to reinforce supply-chain resilience and lower the risk of disruptions in domestic manufacturing.
The crunch is visible at ASE Technology. Vice president Hiro Huang said the packaging giant can satisfy less than half of what customers want, with demand outpacing supply. He cited ASE’s decision two years ago to source T-glass from Taiwan Glass Industry after 40 years of global procurement as evidence that local vendors can step into a supplementary role.
