Taiwan takes another step in production of AI chips with advanced new plant

Taiwan took another step in enhancing its key role in the production of advanced semiconductor chips used for artificial intelligence on Thursday with the inauguration of a new plant by Siliconware Precision Industries Co.

The opening ceremony for the Tan-Ke factory in the central city of Taichung was attended by Jensen Huang, CEO and co-founder of California-based Nvidia Corp, a world leader in the design of AI chips, reinforcing the companies' partnership in the production of advanced AI chips.

SPIL is a leader in semiconductor packaging and testing.

The technology that we're working on is becoming more sophisticated. Chips are getting more and more complex, and the packaging technology will need to evolve as well. What's even more exciting is the integration of silicon photonics, enabling us to connect multiple packages into one massive system, Huang said.

He said Nvidia's partnership with SPIL would be instrumental in pushing the boundaries of innovation in coming years.

Huang also addressed the broader implications of AI development, saying that AI combined with robotics will bring tremendous benefits to Taiwan's world-leading electronics industry.

SPIL expressed enthusiasm for the collaboration, stating that Huang's visit highlights the strong relationship between the two companies.

Huang also was to visit Taiwan Semiconductor Manufacturing Co Ltd, or TSMC, the world's largest independent contract manufacturer of semiconductors.

Huang's visits reflect the critical role Taiwan plays in the global AI supply chain and underscores the growing importance of partnerships between technology leaders like Nvidia and key Taiwanese players in the semiconductor industry.

The Biden administration has proposed a new framework for exports of the advanced computer chips used to develop AI, an attempt to balance national security concerns with the economic interests of producers and other countries.

Part of the motivation is to make it harder for China to circumvent existing restrictions that were focused on China, said Johannes Himmelreich, a professor who researches AI policy at Syracuse University.

Chip companies have criticised the policy as hastily drawn up and potentially damaging to the industry.

Because the proposed framework includes a 120-day comment period, the incoming Republican administration could ultimately determine the rules for sales abroad of advanced computer chips designed mostly by California companies such as Nvidia and AMD but manufactured in locations such as Taiwan and South Korea.