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Taiwan Advanced Packaging Equipment and Testing Opportunities

Taiwan’s continued investment in semiconductor manufacturing is creating new opportunities for U.S. suppliers of advanced packaging and testing equipment. According to SEMI, semiconductor equipment sales in Taiwan rose 90% in 2025 to a record $31.5 billion, driven by capacity expansion for AI and high-performance computing. Globally, test equipment sales are forecast to increase 31% to $15.3 billion in 2026, while assembly and packaging equipment sales are expected to grow 9.6% to $6.7 billion.

Taiwan’s leading semiconductor companies are expanding their advanced packaging capabilities to meet growing demand for AI chips. Taiwan Semiconductor Manufacturing Company (TSMC) operates and continues to expand advanced packaging facilities across Taiwan. In September 2026, Taiwan broke ground on the Baipu Industrial Park in Kaohsiung, where TSMC plans to establish a technology validation laboratory and talent training center to support equipment and materials suppliers. ASE Technology Holding Co. Ltd. (ASE) is also adding capacity and adopting more automated production. These investments will generate demand for technologies that improve production efficiency, product quality, and reliability.

U.S. suppliers with advanced packaging, inspection, testing, automation, and manufacturing software solutions are well positioned to pursue opportunities in Taiwan. Products that can support increasingly complex AI chips and improve production yields will be particularly relevant to local manufacturers.

U.S. companies with expertise in advanced packaging, testing equipment, and metrology are encouraged to visit the U.S. Commercial Service at SEMICON Taiwan 2027, taking place August 18–20, 2027, in Taipei. Participation in SEMICON Taiwan can help firms meet foundries, outsourced semiconductor assembly and test (OSAT) companies, substrate manufacturers, and research institutions. For more information, please contact the U.S. Commercial Service in Taiwan: Jason Chang, Commercial Specialist, Jason.Chang@trade.gov or connect with your local U.S. Commercial Service office in the United States to schedule an appointment for a consultation.