The future world will be reshaped by a few disruptive technologies including AI, 5G, autonomous driving, edge computing, etc. All need to be fueled by semiconductor devices. Taiwan is at a pivotal position in this transformation as we are world’s No.1 in foundry, No.1 in package and No.2 in IC design. Moore’s law is slowing down; however, the needs for higher performance and better energy efficient devices never subside. To overcome the challenges, (IC) design and (process) technology co-optimization has been well adopted. In the near future the co-optimization needs to be extended to package and system. It is not surprising that wafer foundry is stepping into package and system houses are designing their own chips. With the ubiquitous AI, IoT, and Big data, software is essential for device and system solutions. Since devices become smarter, the memory needs become critical. Integration of logic and memory in the package, chip, or even in process becomes a hot topic. Semiconductor devices are needed in all aspects from daily life to military operation. Semiconductor technology is used to measure a nation’s strength. With disputes between US/China, Japan/Korea, the world is aware that semiconductor is not only reflecting a country’s strength but also reaching the status of national security. The semiconductor supply chain is deglobalizing and divided into two major camps, US and China. Taiwan has been playing an important role in semiconductor supply chain. We should continue to invest semiconductor industry, encourage R&D, encourage collaboration between upstream and downstream, and be a neutral and friendly high-tech supplier in foundry, IC design, equipment, and raw materials. It is also important to have OEM/ODM system houses in Taiwan. The system houses will anchor the upstream semiconductor industry. Taiwan has done it in PC era. We could learn from that success story and repeat that success.