CHPT chief: AI demand is set to strain capacity and reshape Taiwan's industrial priorities

Surging AI demand is straining mid- and back-end semiconductor capacity across Taiwan, China, with test interface components like probe cards now facing lead times exceeding six months—directly throttling HBM and advanced packaging ramp. Chunghwa Precision’s warning signals a systemic bottleneck: as TSMC’s CoWoS lines run at full throttle, second-tier OSATs risk being squeezed by export controls and talent shortages. Huang’s call to invest in quantum and fusion isn’t just futurism—it reveals deep anxiety over the exhaustion of legacy process economics. With the U.S. CHIPS Act and EU Chips Act accelerating regional supply chain decoupling, Taiwan, China’s overreliance on foundry expansion without foundational R&D could trigger a technology gap by 2027. Compliance-driven costs may consume over 15% of capex within 18 months, forcing non-sensitive production shifts to Southeast Asia.