Fri, Sep 02, 2016 - Page 12 News List

Semiconductor industry to see revenues increase by 6 percent: market researcher

By Lisa Wang  /  Staff reporter

The nation’s semiconductor industry is expected to see its revenues increase by 6 percent annually next year, supported by robust demand for advanced chips for smartphones, notebook computers, automobiles and other devices, a Taipei-based market researcher said yesterday.

The growth rate will be higher than the global semiconductor industry’s 1.8 percent, Market Intelligence and Consulting Institute (MIC, 產業情報研究所) said.

“Taiwanese semiconductor companies will outperform the overall semiconductor industry, as local foundry players are gaining ground amid robust demand for advanced chips,” MIC director Chris Hung (洪春暉) told a news conference.

Semiconductor companies are expected to expand their revenues from this year’s NT$2.27 trillion (US$71.52 billion) to NT$2.4 trillion, MIC said.

The MIC has factored in the positive aspects of the merger of the nation’s two largest chip testers and packagers, Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) and Siliconware Precision Industry Co (SPIL, 矽品), Hung said.

“As ASE and SPIL will operate independently after the merger, it will prevent the companies from losing orders, since their customers do not have to seek a second source,” Hung said.

However, Hung said there would be increased competition from China, which is attempting to increase its influence in the industry via acquisitions and mergers.

A potential merger between China’s Nantong Fujitsu Microelectronics Co (南通富士通) and Amkor Technology Inc, the world’s No. 2 chip packager and tester, might narrow the gap between Taiwanese firms and their Chinese peers in the chip testing and packaging business in terms of market share, he said.

Hung said growth in Taiwan’s semiconductor industry is supported by the nation’s technological leadership.

Taiwan Semiconductor Manufacturing Co (台積電), which supplies chips for Apple Inc’s iPhones, will continue to gain ground in advanced chip segment as it will start the mass production of its advanced 10-nanometer chips next year, he said.

Chip designers, MediaTek Inc (聯發科) in particular, are to show solid growth next year, along with the expansion of their Chinese clients in the global smartphone market, Hung said.

China’s Oppo Mobile Telecommunications Corp (歐珀移動) and Vivo Electronics Corp (維沃移動通信) are eating into the market share of their global rivals, he said.

Meanwhile, increasing demand for chips used in new applications, such as driving safety, will also stimulate chip demand, Hung said.

The demand for image sensors, microcontrollers and driver integrated circuits — used in autonomous advanced drivers assistance systems, and parking assistance systems and displays — will also spur demand for advanced chips, he added.

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