A global shortage of semiconductor chips, which has affected the automotive industry and is threatening to spill over to other sectors, bodes well for Taiwan’s exports and GDP growth this year, Australia and New Zealand Banking Group (ANZ) said yesterday.
“We believe the robust demand for chips will add tailwinds to the economy’s export orders and
production outlook over the first half of this year, at least,” ANZ said, projecting GDP growth this year of 3.8 percent.
Photo: Sam Yeh, AFP
Taiwanese firms in the semiconductor industry accounted for 75.7 percent of global IC foundry revenue, 56.7 percent of package and testing revenue, and 19.3 percent of design revenue last year, the Taiwan Semiconductor Industry Association said.
The chip shortage has deepened amid production disruptions at automakers.
Research body IHS Markit expects the shortage to persist in the first half of this year, affecting about 3 percent of global production, or 628,000 vehicles, this quarter alone.
Automakers use chips for safety and performance features, such as electronic stability programs and electronic control units.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), United Microelectronics Corp (聯電), Vanguard International Semiconductor Corp (世界先進) and Powerchip Technology Corp (力積電) have agreed to prioritize production and suggested the possibility of price hikes.
TSMC is seeking to cut the lead-time for production of automotive chips by 50 percent to 20 to 25 days, ANZ said, citing industry analysts.
The ripple effect of the chip shortage is threatening to disrupt the smartphone industry, with Samsung Electronics Co saying that a shortage of semiconductors for memory chips used in smartphones might slow its production schedule.
Taiwan’s chipmakers ramping up production amid an upturn in the tech cycle, 5G rollouts and the trend toward electric vehicles bodes well for Taiwan’s electronics industry and its economy as a whole, ANZ said.
The traditional sectors are also picking up, helping exports to contribute 1.4 percentage points to GDP growth, the bank said.
“We believe the strong momentum will extend into the first half of this year, with likelihood of upside risks,” ANZ said.
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