The Made in Taiwan report examines Taiwan’s technology industry, focusing on its role in semiconductor manufacturing, power electronics, embedded systems design, and AI. The small island of Taiwan is a global leader in chip manufacturing, packaging, design, and test, and its position in the global economy is only getting larger as it bolsters its system integration capabilities.

As Taiwan sets the next stage of growth by focusing on education, research and development, collaborations, and systems capabilities, according to contributing writer Alan Patterson, we dive deep into four key technology areas—semiconductor manufacturing and packaging, power electronics, embedded systems, and AI and edge computing—where Taiwan is making significant advancements.

Thanks to increasing global demand for AI, Taiwan is on track to set new records in chip production and advances in technology. Patterson finds that Taiwan’s government is taking a holistic approach toward industrial development to establish a foundation for growth. This ensures that AI-assisted design and intelligent manufacturing capabilities not only serve large foundries and integrated device manufacturers, but they also trickle down to small and midsized IC design companies and supply chain partners.

However, Taiwan faces resource constraints in both power and water resources to meet production demand. Taiwan’s tech industry also faces a shortage of tech workers and geopolitical issues from the tech war between the U.S. and China.

In chip production and packaging, Taiwan has the most advanced semiconductor foundries and packaging plants, and it is home to many assembly-and-test providers. Taiwan’s semiconductor production is expected to reach $197.2 billion in 2025, driven by strong demand for AI accelerators, according to contributing writer Pablo Valerio.

At the center of Taiwan’s tech industry is TSMC, driving innovations with its new 2-nm process and 2.5D, 3DIC, and chiplet packaging technologies. Chipmakers supply everything from logic and memory ICs to wide-bandgap (WBG) power devices.

But TSMC does not work alone, Valerio writes. Due to geopolitical risks, the supply chain is becoming more localized, and at the center is the “Grand Alliance,” a group of IP providers, equipment makers, and material suppliers.

In power electronics, Taiwan is advancing its role and innovations in power devices, especially in WBG materials such as gallium nitride (GaN) and silicon carbide (SiC), keeping in mind the global shifts toward electrification and energy efficiency. Power electronics companies range from established foundries to fabless startups.

In GaN, Taiwan’s progress has been closely tied to its foundry and packaging strengths, with SiC development following a similar path, although with higher voltage classes and more demanding qualification requirements, according to Stephen Las Marias, editor for EE Times Asia/India and EDN Asia. Taiwan’s push into WBG semiconductors is being shaped by how effectively those devices are packaged, tested, and deployed into real-world power systems, he writes.

Taiwan’s government has positioned power devices as a national technology priority, according to contributing writer Filippo Di Giovanni, and it will require coordinated contributions across materials, epitaxy, device design, specialized manufacturing workflows, packaging, and reliability testing.

Taiwan is leveraging its technologies in foundries and packaging to build a global power electronics ecosystem beyond advanced digital nodes, as the industry requires substantial improvements in power efficiency, energy density, thermal management, and high-level integration, Di Giovanni writes. At the same time, designers are also exploring ultra-wide-bandgap semiconductors such as gallium oxide or even diamond.

Taiwan is also making a big shift from single chips to systems and solutions by strengthening its system integration and mass production capabilities.

Semiconductor design is no longer focused on the technology node alone but on integration at the package level, according to Giordana Francesca Brescia. Taiwan is adopting an integrated end-to-end approach, extending from the silicon manufacturing process to the integration of hardware, firmware, and application software, she said.

MediaTek is a key example of Taiwan’s transition from a simple silicon manufacturer to a designer of complete embedded platforms, Brescia writes. Historically focused on consumer electronics, MediaTek’s portfolio now includes industrial applications, advanced IoT, edge networking, and medical systems, delivering highly integrated platforms that reduce system complexity and power consumption.

Taiwan is also swiftly accelerating the development of AI chips and edge computing systems. Taiwan’s Industrial Development Administration said the global surge in AI data centers and wider AI adoption will be a tailwind for Taiwan over the next five years.

At the Consumer Electronics Show 2026, there was a clear demonstration of platform-driven engineering, according to Susan Hong, chief editor for EE Times Taiwan, with chips, software, and systems increasingly integrated into computing frameworks. However, there is a gap between platform vision and engineering reality, she writes, where latency, power constraints, regulatory compliance, and integration with legacy systems need to be addressed.

So who makes these platforms run? This is where Taiwan’s tech startups are playing a critical role, Hong reports. Edge application deployment, sensor integration, and system integration will determine whether AI can operate effectively in real-world environments.

The Taiwan Pavilion at CES curated exhibits that showed AI’s penetration into daily life and industrial workflows, and under the guidance of Taiwan’s National Science and Technology Council and Taiwan Tech Arena, Taiwanese startups participated in Eureka Park at CES, working alongside local supply chain partners. Their focus spans generative AI and edge computing, precision healthcare and health monitoring, smart manufacturing and automation, and green energy and sustainability solutions, Hong reports.

Read on to discover Taiwan’s vital role in developing critical technologies around semiconductor manufacturing and packaging, power electronics, embedded systems development, and AI, and how they achieve these advances with support from the Taiwan government.

Source：EE Times