Sat, Jun 11, 2005 - Page 10 News List

Mild rebound predicted for local microchip firms


Taiwanese semiconductor companies can expect a mild rebound in sales in the second half of the year as demand should pick up on shrinking inventories and seasonal factors, the Taiwan Semiconductor Industrial Association (TSIA, 台灣半導體協會) said.

The overall semiconductor industry hit the bottom in the first quarter in light of low factory usage, the association said in a statement released on Thursday. The industry includes integrated-circuit (IC) design, manufacturing, packaging and testing.

But demand should improve in the next six months on a brighter economic outlook and the arrival of the traditionally lucrative electronics-purchasing season, the Hsinchu-based association added.

"The seasonal demand will bring gradual growth for Taiwan's chipmakers in the second half of the year after customers begin writing off inventories," the TSIA said.

The first positive signal came from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Thursday. The world's top contract chipmaker raised its outlook for the second quarter, saying rising demand will boost factory usage to 84 percent in the current quarter.

Wafer shipments are expected to grow by up to 13 percent on a quarterly basis, TSMC said.

During the April-June period, sales of Taiwan's semiconductor companies are expected to increase by 8 percent to total NT$254.7 billion (US$8.1 billion), compared with NT$ 235.8 billion in the first three months, TSIA said.

The first-quarter sales were 3 percent lower from a year ago, while the global industry grew 12.8 percent to US$55.1 billion during the same period, the association said, citing a report by World Semiconductor Trade Statistics.

For this year as a whole, the association predicted that the local semiconductor industry's sales will inch up 3.1 percent to NT$1.133 trillion from NT$1.099 trillion last year, with IC testing and packaging showing the highest levels of growth, bolstered by the expected industry upturn in the second half of the year.

This story has been viewed 3518 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top