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.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to