The production value of Taiwan’s integrated circuit (IC) industry is estimated to grow at a quarterly rate of 0.4 percent to NT$573.9 billion (US$19 billion) this quarter, but the figure would remain 4.6 percent lower than the same period last year, the Industrial Technology Research Institute’s Industrial Economics and Knowledge Center (IEK) said last week.
The IEK said the output growth momentum for the IC industry would likely see a substantial recovery next quarter at the earliest, with production value reaching NT$696.3 billion, up 21.3 percent quarter-on-quarter and 5.6 percent year-over-year.
The IC industry covers chip design, manufacturing, packaging and testing, with the manufacturing segment accounting for more than 50 percent of the industry’s total production value.
Given the continued weakness among local manufacturers, output of the manufacturing segment is forecast to fall by 6.4 percent sequentially to NT$300.4 billion this quarter, after an 11 percent decline in the first quarter, the center said.
The cautious forecast came after Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, said last month that slow season effects will continue to impact its shipments at a time of inventory adjustments so its consolidated sales for the three-month period could fall 8 to 9 percent from the first quarter.
Smaller United Microelectronics Corp (聯電) also said sales for the second quarter are likely to stay flat from the first quarter.
However, the output of the design segment, the second largest sub-segment in the local IC business, is expected to grow 10.2 percent quarter-on-quarter to NT$154 billion this quarter, the IEK said.
MediaTek Inc (聯發科), the largest IC design house in the nation, has said that it expects its consolidated sales for the second quarter will grow by up to 8 percent from a quarter earlier.
The IEK said the output of the packaging segment is expected to rise 7.8 percent sequentially to NT$83 billion in the second quarter, while that of the testing segment will likely rise 8 percent to NT$36.5 billion.
In the first quarter, the production value of the nation’s IC sector totaled NT$571.4 billion, down 11.3 percent quarterly, but up 5 percent annually.
The manufacturing segment contributed NT$320.8 billion in output and the design segment generated NT$139.8 billion in production value.
The IEK said the production value of the packaging and testing segments hit NT$77 billion and NT$33.8 billion respectively in the first quarter.
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has