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【Industry Application】Taiwan’s IC Output Expected to Grow 5.6% in Q3

The production value of Taiwan’s semiconductor sector will grow by up to 5.6 percent in the third quarter as a result of peak effects, a government-sponsored research report predicted Thursday.

The local integrated circuit (IC) industry will be coming in on strong momentum from the second quarter, when output grew 16.8 percent from the previous quarter on solid demand for consumer electronics from China, the report said. Output growth will be more moderate for the third quarter, however, due to a relatively high comparison base, the report adds.

The research report was released by the Industrial Economics and Knowledge Center (IEK) of the government-sponsored Industrial Technology Research Institute.

The report puts production value of the local semiconductor industry at a total of NT$506.9 billion (US$16.9 billion), up from the NT$480 billion recorded in the second quarter. The IC design sector is expected to see its third quarter output rise 10 percent to NT$133.8 billion, and MediaTek Inc., one of Taiwan’s leading IC designers, is expected to continue to benefit from strong demand for smartphone chips from China, it says. IC manufacturing, meanwhile, is expected to grow 3.9 percent quarter-on-quarter, to NT$263.8 billion, with growth led by Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker. The IEK said production value of the IC packaging and testing segments is likely to grow 4.6 percent and 4.3 percent, respectively, to NT$75.7 billion and NT$33.6 billion.

Despite the growth prediction, IEK noted that the traditionally slow fourth quarter means that October-December output could drop about 6.8 percent to NT$472.6 billion on inventory adjustments. The adjustments are expected to continue into the first quarter of next year, it said.

IC output over the entire year in 2013 is expected to reach NT$1.87 trillion, up 14.4 percent from last year, the IEK said.

  • Source: Jackson Chang and Frances Huang, CNA