A 20 percent increase in the purchase of semiconductor production equipment in the third quarter helped Taiwan regain its status as the world’s biggest semiconductor equipment market in the world, leapfrogging China.
Taiwan’s semiconductor equipment purchases during the period rose 21 percent from a quarter earlier and 34 percent from a year earlier to US$3.9 billion, according to data from SEMI, a global industry association that serves the electronics industry supply chain.
That vaulted Taiwan into the top spot ahead of the second-quarter leader China, which purchased US$3.44 billion in semiconductor equipment in the quarter, up 2 percent from a quarter earlier, but down 14 percent from a year earlier, SEMI figures showed.
Taiwan was ranked third in semiconductor equipment purchases throughout last year, behind South Korea and China.
However, it rose to first in the first quarter of this year and second in the second quarter largely because of an aggressive expansion of capacity and development of new processes by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
TSMC, the world’s largest contract chipmaker, with a more than 50 percent share in the global market, is developing sophisticated 7 nanometer, 5nm and 3nm processes that require big investments in equipment able to achieve the miniaturization demanded by the new technologies.
After launching mass production of the 7nm process last year, TSMC is scheduled to start commercial production of 5nm and 3nm technologies next year and 2022, respectively.
According to a market estimate, TSMC alone had capital expenditure of about NT$98.12 billion (US$3.22 billion) in the third quarter.
For this year as whole, the company estimated capital expenditure at between US$14 billion and US$15 billion, the highest level in the company’s history.
TSMC said its capex for next year could stay at a similar level.
After Taiwan and China, North America took third place in the rankings after purchasing US$2.49 billion in semiconductor equipment in the third quarter, up 47 percent from a year earlier and up 96 percent from a year earlier, SEMI said.
South Korea came in fourth with purchases of US$2.2 billion, down 15 percent from a quarter earlier and down 36 percent from a year earlier.
In the third quarter, semiconductor equipment shipments worldwide totaled US$14.86 billion, up 12 percent from a quarter earlier but down 6 percent from a year earlier, SEMI said.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms