The production value of Taiwan’s integrated circuit (IC) industry is expected to grow 20.7 percent year-on-year this year on the back of a booming stay-at-home economy and emerging technologies, the Taiwan Semiconductor Industry Association (TSIA, 台灣半導體協會) said in a report on Friday.
The association had earlier estimated growth of 12.6 percent.
Production value of the IC industry — ranging from manufacturing to design, packaging and testing — is forecast to reach NT$3.21 trillion (US$111.28 billion) this year, TSIA said.
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The IC manufacturing segment is expected to see output rise by an annual 23.4 percent to NT$1.81 trillion, the IC design segment is to increase by 22.7 percent to NT$850.3 billion, the IC packaging segment is to rise 9.4 percent to NT$379 billion, and the IC testing segment is to grow 11.7 to NT$172.5 billion, it said.
The higher output is being boosted by robust demand for notebook and tablet computers, monitors, TVs, and communication devices for remote work amid the COVID-19 pandemic, it added.
The favorable circumstances are expected to continue into the fourth quarter of the year, the association said, adding that the industry is unlikely to falter during what is usually a slow season this quarter.
Output of the domestic IC industry in the fourth quarter is expected to rise 1.3 percent quarterly to NT$878 billion, while contract chipmakers, such as Taiwan Semiconductor Manufacturing Co (台積電) and United Microelectronics Corp (聯電), are expected to see record sales, TSIA said.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain the third-largest IC supplier this year, unchanged from last year, IC Insights said yesterday. IC designer MediaTek Inc (聯發科) is expected to become the 11th-largest, up from 16th last year, the semiconductor market research firm said. TSMC is expected to post US$45.42 billion in sales, up 31 percent from last year, IC Insights said in a report released on its Web site. TSMC’s sales growth is largely due to a surge in orders from Apple Inc and HiSilicon Technologies Co (海思半導體) — two of its major clients — which
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