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