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Taiwan's IC sector to grow 8.6% on Q2

Tuesday, May 14, 2019

The production value of the local integrated circuit sector is expected to grow 8.6 percent to NT$612.9 billion (US$19.8 billion) in the second quarter from a quarter earlier on rising demand for select consumer electronics devices, the Industrial Technology Research Institute (ITRI) said.

While the global semiconductor sector continues to work through inventory adjustments in the second quarter, the looming peak season for the consumer electronics industry should rekindle demand and boost the local semiconductor industry, which experienced a slow first quarter, with output falling 17.9 percent to NT$564.3 billion from the previous quarter, the institute said.

Makers of some consumer electronics gadgets, such as interactive toys, have seen orders grow, increasing demand for semiconductors to some extent, while other consumer electronics devices, including smartphones, remain in the doldrums, it said.

Within the industry, the production value of the IC manufacturing segment is expected to rise 5.1 percent from a quarter earlier to NT$322.6 billion, while the output of the IC design segment is expected to grow 15.6 percent to NT$170.8 billion, the institute said.

The production values of the IC packaging and testing segments are to rise 10.2 percent and 6.4 percent to NT$83.0 billion and NT$36.5 billion respectively, it said.

For this year as a whole, the output value of Taiwan’s IC industry is expected to fall 1.3 percent from a year earlier to NT$2.58 trillion, the institute said.

Memorychip makers are expected to see their output value fall 35.3 percent annually due to weakened pricing power amid a supply glut, which will drag down the overall IC industry, the institute said.

By: DocMemory
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