Because of the increasing demand, the output value of Taiwan's contract chip makers is expected to reach US$3.66 billion in the third quarter, over the previous quarter by 16.9% .

The contract chip manufacturing industry experienced a recovery in the second quarter, with output totaling NT$103.5 billion, an increase of 13.2 percent over the previous quarter, the survey released by the Taiwan Semiconductor Industry Association said.

Third-quarter output is likely to continue on an upward trend following decreases in inventory levels caused by growing demand for personal computers, mobile phones and other consumer electronic products thanks to hot seasonal sales and outsourcing of orders for nanotech products reported by integrated device manufacturers, the TSIA report said.

The Hsinchu-based association predicted third-quarter output would surge by 5.49 percent compared with the same period last year.

However, the second-quarter output value of integrated circuit products decreased to NT$64.3 billion, down 29.4 percent on the previous quarter. Third-quarter output is expected to top NT$85 billion, an increase of 32.2 percent over the previous quarter, due to a boost in DRAM makers' production capacity, advances in manufacturing techniques and a rebound in product prices.

By: DocMemory
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