Major Milestones
Developing Semiconductors From Scratch: Taiwan’s Semiconductor Industry Hall of Fame
With the success of the RCA project, ITRI set up United Microelectronics Corporation (UMC) in 1980 and transferred the 4-inch wafer technology along with its R&D team to this spin-off company. UMC was Taiwan’s first IC company and one of the first businesses to settle in Hsinchu Science Park. In 1985, UMC became the first listed semiconductor company in Taiwan. However, the global technology protectionism trend made it difficult to introduce overseas technology into Taiwan; thus in 1984, ITRI launched the very large-scale integration (VLSI) project and started its own research and development. Dr. Morris Chang was invited by Premier Yun-Suan Sun to return to Taiwan in 1985 and serve as the President of ITRI to govern the development of the 6-inch wafer technology.
In collaboration with Philips, the VLSI demonstration factory officially began operations in 1986 to boost the production of the 6-inch IC. Taiwan Semiconductor Manufacturing Company (TSMC) was established the next year. ITRI transferred fabs, equipment, technology, and 98 professionals to TSMC, making it the world’s first company to operate an IC OEM model. IC design companies can simply commission TSMC to produce their designs without setting up a costly fab themselves. This also encouraged the establishment of many new IC design companies in Taiwan. In 1989, ITRI span off Taiwan Mask Corporation that provides domestic IC design companies with mask production services. Such services lower the manufacturing cost of IC products and shorten the procedures to increase market competitiveness.
With these spin-off companies established in the 1990s, Taiwan gradually developed a complete semiconductor industry chain. To date, Taiwan’s semiconductor industry is world-renowned and ITRI continues to work on next generation semiconductors. In 2010, ITRI established Asia’s first 3D IC R&D laboratory which has full 12-inch 3D IC core process with through-silicon via (TSV) packaging technology. In 2021, ITRI teamed up with a world leader in semiconductor IP design Arm to set up the innovative IC design platform. The objective was to expand the global market share of Taiwan’s IC design industry. ITRI also announced the launch of the Southern Rainforest Project in the same year. Both public and private sectors will work on the development of compound semiconductors and automotive power electronics to build a semiconductor industry chain in southern Taiwan.