The production value of Taiwan’s integrated circuit (IC) sector in the third quarter is expected to rise 7.89 percent from the second quarter as global demand remains strong, a report from the Ministry of Economic Affairs (MOEA) said on Wednesday.
The strong demand is anticipated as the third quarter is the peak season for the global high-tech industry, according to the report released by Industry & Technology Intelligence Services (ITIS), a research unit of the ministry’s Department of Industrial Technology.
ITIS said the local IC sector’s production value for the third quarter is expected to hit NT$477.1 billion (US$14.96 billion), compared with NT$442.2 billion recorded in the second quarter.
In the second quarter, production value of the local IC sector rose 12.8 percent from the previous quarter. The ITIS said the slower growth in the third quarter reflects the high comparison base in the second quarter.
ITIS added that a shortage of production capacity in the sector will also limit growth in the third quarter.
The report said the insufficient production capacity has prompted several IC heavyweights to raise their capacity expenditure for this year.
Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, has hiked its capacity expenditure to US$5.9 billion from the previously planned US$4.8 billion, while United Microelectronics Corp (聯電) has raised its planned spending to US$1.8 billion from US$1.2 billion-US$1.5 billion.
During the same three-month period, production value of the IC design segment is expected to reach NT$137.5 billion, up 15 percent from the previous quarter on the back of demand for PCs, notebook computers, LCD TVs and cell phones, ITIS said.
The production value of the IC manufacturing segment for the third quarter is expected to rise 5.2 percent to NT$229 billion, production value of the IC packaging segment may grow 5 percent to NT$76.1 billion and production value of the IC testing segment is likely to add 6.2 percent to reach NT$34.5 percent.
In the second quarter, production value of the IC manufacturing segment rose 15.4 percent from the first quarter to NT$217.6 billion, and production value of the IC packaging segment gained 13.3 percent to NT$72.5 billion.
Production value of the IC testing segment in the second quarter added 14 percent to NT$32.5 billion, and production value of the IC design segment grew 7.7 percent to reach NT$119.6 billion.
Taiwan’s rapidly aging population is fueling a sharp increase in homes occupied solely by elderly people, a trend that is reshaping the nation’s housing market and social fabric, real-estate brokers said yesterday. About 850,000 residences were occupied by elderly people in the first quarter, including 655,000 that housed only one resident, the Ministry of the Interior said. The figures have nearly doubled from a decade earlier, Great Home Realty Co (大家房屋) said, as people aged 65 and older now make up 20.8 percent of the population. “The so-called silver tsunami represents more than just a demographic shift — it could fundamentally redefine the
The US government on Wednesday sanctioned more than two dozen companies in China, Turkey and the United Arab Emirates, including offshoots of a US chip firm, accusing the businesses of providing illicit support to Iran’s military or proxies. The US Department of Commerce included two subsidiaries of US-based chip distributor Arrow Electronics Inc (艾睿電子) on its so-called entity list published on the federal register for facilitating purchases by Iran’s proxies of US tech. Arrow spokesman John Hourigan said that the subsidiaries have been operating in full compliance with US export control regulations and his company is discussing with the US Bureau of
Businesses across the global semiconductor supply chain are bracing themselves for disruptions from an escalating trade war, after China imposed curbs on rare earth mineral exports and the US responded with additional tariffs and restrictions on software sales to the Asian nation. China’s restrictions, the most targeted move yet to limit supplies of rare earth materials, represent the first major attempt by Beijing to exercise long-arm jurisdiction over foreign companies to target the semiconductor industry, threatening to stall the chips powering the artificial intelligence (AI) boom. They prompted US President Donald Trump on Friday to announce that he would impose an additional
China Airlines Ltd (CAL, 中華航空) said it expects peak season effects in the fourth quarter to continue to boost demand for passenger flights and cargo services, after reporting its second-highest-ever September sales on Monday. The carrier said it posted NT$15.88 billion (US$517 million) in consolidated sales last month, trailing only September last year’s NT$16.01 billion. Last month, CAL generated NT$8.77 billion from its passenger flights and NT$5.37 billion from cargo services, it said. In the first nine months of this year, the carrier posted NT$154.93 billion in cumulative sales, up 2.62 percent from a year earlier, marking the second-highest level for the January-September
RSS