The role of Siliconware Precision Industries (SPIL) could be more important following mergers in the worldwide semiconductor industry, according to Bough Lin, chairman for the Taiwan-based IC backend house.

Vendors such as Avago Technologies continue their expansions with acquisitions, Lin observed. Nevertheless, such trend could help SPIL draw the attention of the world's first-tier semiconductor players, as SPIL is already a supplier of those companies they acquire, Lin said.

In response to increased consolidation in the semiconductor space, SPIL will be striving to win more orders from the bigger chip players, Lin noted.

In addition, Lin commented that Taiwan's semiconductor industry has a complete supply chain and should not fear competing with China's despite its anticipated rapid development. "A country should not develop a home-grown supply chain focused only on its domestic companies and markets," said Lin. "Ultimately, they all need to open the door in order to fit into the global market - which government subsidies and other support cannot help out."

Developing their home-grown technologies is important for China to boost its role in the worldwide semiconductor industry, Lin indicated. Lin added that China's semiconductor assembly and test sector is still lagging its Taiwan-based counterpart by 3-5 years in terms of technology.

Lin urged cooperation between China- and Taiwan-based chip companies, rather than competition. Taiwan's authorities should substantially lift restrictions on Taiwan companies' investment in China, Lin also suggested.