Taipei: Heterogeneous integration and silicon photonics have become the main focus of the global semiconductor industry, according to experts who observed SEMICON Taiwan 2025, which concluded earlier this month.

According to Focus Taiwan, this year’s SEMICON Taiwan highlighted artificial intelligence (AI) applications, which are driving innovations and integration across the semiconductor supply chain-from advanced chip production processes to IC packaging and testing, smart manufacturing, and talent cultivation. Liu Pei-chen, a researcher at the Taiwan Institute of Economic Research’s Taiwan Industry Economics Database, shared these insights with CNA over the weekend.

Liu emphasized that heterogeneous integration, the process of combining multiple types of components such as logic chips, memory, sensors, photonics, and radio frequency modules into a single compact system, was a major theme at this year’s show. The industry is striving to build more powerful and efficient AI chips by integrating technologies with different functions.

In addition, Liu noted that traditional electronic signal transmission is inadequate for meeting the massive data-processing demands of the AI era. However, silicon photonics can address these demands effectively. “Heterogeneous integration and silicon photonics have become the critical and strategic technologies of future semiconductor development,” Liu said.

“Taiwan is expected to continue to play a key part in these important technologies by taking advantage of its advanced pure play wafer processes and IC assembly and packaging services,” she added. Currently, Taiwan Semiconductor Manufacturing Co. is the global leader in the pure play wafer business, and ASE Technology Holding Co. holds the top spot in IC packaging and testing.

This year, SEMICON Taiwan reported a record 1,200 exhibitors and more than 100,000 visitors. According to SEMI, the organizer, SEMICON Taiwan 2026 will take place on Sept 2-4 and is expected to break these records.