The global integrated circuit (IC) industry should have a better second half of this year following inventory adjustments, the chairman of Siliconware Precision Industries Co Ltd (SPIL, 矽品精密), the world’s No. 2 chip packager, said yesterday.
SPIL chairman Bough Lin (林文伯) told the company’s annual general meeting that inventory adjustments are expected to continue into the third quarter.
Lin said he was cautious because of uncertainty over the long-term outlook for the global economy due to rising energy prices and the eurozone’s debt problems. In addition, interruptions to the supply chain remain a concern after Japan’s March 11 earthquake and tsunami, he said.
The pace of economic recovery in the US and Europe was slowing down, while rising inflation in emerging markets will likely lead to tightened liquidity, which hurts consumption, he said.
Earlier this month, Morris Chang (張忠謀), chairman of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), said the global IC sector was growing at a slower pace than the market had anticipated one year or even six months earlier.
Chang cut his growth forecast for the sector, excluding the memorychip segment, from 7 percent to 4 percent for this year.
Lin said the market was closely watching whether shipments of Intel chips and cellphones would continue to grow in the second quarter.
SPIL was expected to hit its lower-end revenue target by reaching a 3 percent quarter-on-quarter increase in sales for the second quarter, Lin said.