The production value of Taiwan’s semiconductor industry in the third quarter rose about 9 percent from a quarter earlier, as the industry benefited from peak-season effects, the Industrial Technology Research Institute (ITRI, 工業技術研究院) said on Friday.
Output in the third quarter stood at NT$1.38 trillion (US $42.42 billion), up from NT$1.27 trillion in the second quarter, the government-funded institute said in its IEK Current Quarterly Model report.
Within the chip industry, the IC manufacturing segment recorded the best performance from July to September, with production value rising 11.1 percent from the previous quarter to NT$896.5 billion, the report showed.
Photo: I-Hwa Cheng, Bloomberg
The IC packaging service segment came in second, rising 9 percent to NT$111.4 billion, followed by IC testing service providers, which posted NT$50.5 billion, up 4.3 percent, the report showed.
The IC design segment ranked fourth, climbing 4.2 percent to NT$325.6 billion, the institute said.
The four segments of the local semiconductor industry are expected to see output grow in the fourth quarter, with output value increasing 6.9 percent sequentially to NT$1.48 trillion, it added.
This year, the local semiconductor industry is expected to post NT$5.3 trillion in production value, up 22 percent from last year, with growth in chip manufacturing, design, packaging and testing estimated to rise 27.5 percent, 16.5 percent, 8.6 percent and 5.2 percent respectively, the ITRI said.
Analysts said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, would serve as a driver to growth in the local IC industry this year, on the back of robust demand for its advanced 3-nanometer and 5-nanometer processes following the current boom in artificial intelligence development.
At an investors’ conference earlier last month, TSMC forecast that sales this year would grow almost 30 percent from last year in US dollar terms, up from its previous estimate of 24 to 26 percent growth.
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