Building Taiwan's semiconductor equipment industry, part 1: local machines face long customer validation

Sep 04, 2026

Taiwanese equipment makers are pushing to replace imported semiconductor machines, but slow customer testing is the real bottleneck — a long grind for local suppliers, and a sign of how carefully Taiwan guards its chip yields.

  • Building a machine is the easy part; chipmakers test new equipment for a long time before letting it near a production line.
  • Tong Tai Machine, led by chairman Yen Jui-hsiung, is targeting hard, brittle materials like silicon carbide, ceramics and quartz, where Japanese grinders have long dominated.
  • Price alone will not win the business — local makers are competing on precision and on customizing machines the way foreign suppliers refuse to.
  • One module project with a supplier to Taiwan's biggest chipmaker took over a year and a half just to get certified.
  • China is taking the opposite route: cut off from imports, it builds and installs its own tools first and fixes yields later, while Taiwan validates first and only then goes to volume production.

Outlook: Local equipment will keep gaining ground slowly, with the certification queue — not the technology — setting the pace.

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