tsmc and umc tap ai to lead in semiconductor innovations
Taipei, Sunday, 26 January 2025.
Taiwan Semiconductor Manufacturing Company and United Microelectronics Corporation are enhancing their semiconductor production processes with artificial intelligence. This initiative aims to increase operational efficiency and uphold their competitive positions as the semiconductor market continues to expand. Both companies are integrating AI technologies into manufacturing and management platforms, highlighting the swift evolution of AI in the industry. By 2030, the semiconductor market is projected to surpass one trillion dollars. TSMC leads with its advanced packaging and process technology, catering extensively to global AI chip demands. UMC is focusing on fast transmission and power management chips in AI markets. TSMC’s innovative use of AI is expected to boost productivity significantly, with even a 1% increase in productivity potentially generating an additional $10 billion in revenue. The developments underscore the growing importance of AI in maintaining technological leadership in the semiconductor sector.
Operational transformation through AI integration
TSMC has implemented a comprehensive ‘1Fab’ operational model, integrating AI and IT across its global manufacturing facilities [1][2]. This system ensures consistent quality and production efficiency throughout all fabrication plants. The company employs intelligent scheduling and automated material handling systems to optimize wafer movement and production flow [1]. UMC, since 2016, has been developing its Industry 4.0 capabilities, establishing a dedicated Smart Manufacturing Division in 2017 to spearhead digital transformation [1].
Financial impact and market projections
TSMC Chairman Mark Liu has revealed that each percentage point increase in productivity through AI implementation could generate $1 billion in additional revenue [1][2]. The semiconductor industry’s trajectory, driven by AI applications, is expected to reach a market value of $1 trillion by 2030 [1][2]. TSMC maintains its market leadership by dominating global AI chip orders, while UMC has carved out its niche in high-speed transmission and power management chips [1].
Innovation in workforce efficiency
UMC has developed its GenAI application platform, UGPTs, which streamlines engineering processes and technical documentation [1][2]. This system has demonstrated remarkable efficiency gains, reducing technical report preparation time by 60-80% [1]. For anomaly management, the AI system has cut processing time by 30-40%, significantly improving response times and reducing dependence on senior engineers [1].