THE SEMICONDUCTOR INDUSTRY PLAYS A KEY ROLE

The booming trend of AI technology applications has positioned Taiwan as a crucial player in the global technology supply chain. According to the Directorate General of Budget, Accounting, and Statistics (DGBAS), Taiwan’s export growth rate reached 10.6% in the first four months of 2024, with 64% of total exports coming from electronic components and ICT products, highlighting the technology sector’s significant role in driving Taiwan’s economic growth.

Furthermore, the ongoing US-China tech war and escalating chip conflict, coupled with geopolitical factors, have encouraged Taiwanese companies to move out of China and set up factories domestically. As leading technology companies expand their manufacturing lines, the supply chain follows, stimulating strong demand for industrial property. In recent years, the most notable expansion project has been led by TSMC (Taiwan Semiconductor Manufacturing Company), which is expanding its advanced semiconductor manufacturing in central and southern Taiwan, including Taichung, Tainan, Chiayi, and Kaohsiung.

TSMC is investing NT$2 trillion to develop a new fab project in Kaohsiung and build two advanced packaging fabs in Chiayi County, covering approximately 20 hectares. While the government provides most of the development land for TSMC, the migration of the supply chain ecosystem will drive demand for factories, offices, and residential properties, bringing significant positive effects to the property market in southern and central Taiwan.