The production value of the local IC packaging and testing industry is expected to grow 8.9 percent year-on-year to NT$519.7 billion (US$17.75 billion) this year, due to the booming stay-at-home economy, the Market Intelligence & Consulting Institute (MIC, 產業情報研究所) said in a report on Friday.
The emergence of 5G technology and the launch of new products by international smartphone brands are also expected to help Taiwanese IC packaging and testing service providers to secure more orders, the institute said.
Cheng Kai-an (鄭凱安), a senior industrial analyst and product manager at the institute, said that many suppliers in the industry benefited from an increase in shipments in the first half of this year, as orders were shifted from their counterparts in Southeast Asia, where the spread of COVID-19 was more severe.
In the second half of the year, the industry has been boosted by international brands’ efforts to unveil new smartphones and gaming consoles, Cheng said.
However, the production value of the IC packaging and testing industry is forecast to fall about 2.1 percent in the fourth quarter from the third quarter due to the effects of the slow season, although it could rise 1.1 percent year-on-year, he said.
Cheng said that sanctions imposed by the US on China’s Huawei Technologies Co (華為), which came into effect on Sept. 15, are expected to reduce orders from the Chinese telecom equipment giant in the fourth quarter.
Huawei had wanted to build up its inventories before the tighter restrictions took effect, but high inventories could pose a risk to the global semiconductor industry next year, he said.
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