Strong demand for mobile devices is expected to boost the production value of Taiwanfs IC packaging and testing services industry by 4.9 percent this year, according to the Industrial Economics and Knowledge Center .

IEK, a research unit run by the government-sponsored Industrial Technology Research Institute (HŒ¤‰@), said in a report that the production output of the local IC packaging and testing services business is expected to rise to NT$476.3 billion (US$15.07 billion) this year, up from NT$453.9 billion last year.

In terms of just the IC packaging sector, the report said that its production value is expected to grow at 5.7 percent year-on-year to NT$334 billion this year, while the output of the local IC testing industry is expected to total NT$142.3 billion this year, up 3.2 percent from last year.

However, the growth rate of the packaging and testing services sector would be slower compared with the rate of growth seen last year.

Last year, the local IC packaging and testing services sector enjoyed a 10.4 percent year-on-year increase in output, valued at NT$411 billion due to the rising popularity of smartphones and tablet computers in the world market, the IEK said.

Nonetheless, the IEK said that the sector is expected to continue to ride the waves of an uptrend in mobile device demand, while the booming Internet of Things is expected to serve as another driver to the sectorfs growth.

Internet of Things refers to devices of all types, such as security monitors, vacuum cleaners or mobile phones, connected to the Internet and to each other, to create a more interconnected user experience.

IEK said that since the 4G telecom network has taken off, demand for high-end chips is expected to rise this year, which is expected to push up shipments of the sophisticated IC packaging and testing technology Taiwan possesses.

By: DocMemory
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