Mon, Aug 20, 2007 - Page 12 News List

Chip makers' output expected to soar

STAFF WRITER , WITH CNA

The output value of the nation's contract chip makers is expected to reach NT$121 billion (US$3.66 billion) in the third quarter, a 16.9 percent increase over the previous quarter, thanks to growing market demand, a report released yesterday said.

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 (TSIA, 台灣半導體產業協會) 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.

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