The output value of Taiwan’s semiconductor sector is expected to rise more than 19 percent this year due to stronger performances in the integrated circuit (IC) manufacturing and design segments, the Industrial Technology Research Institute (ITRI, 工研院) said last week.
The output of the local semiconductor industry is expected to reach NT$6.33 trillion (US$209.8 billion) this year, up 19.1 percent from a year earlier, the government-supported institute said in its latest IEK Current Quarterly Model report.
The estimate was more optimistic than a previous ITRI forecast in February, which projected a 16.2 percent increase to NT$6.17 trillion.
Photo: EPA-EFE
By segment, the output of local IC manufacturing is expected to rise 23.1 percent from a year earlier to NT$4.2 trillion, beating an earlier forecast of a 19.4 percent increase, the ITRI said.
The output value of the IC design segment is expected to grow 13.9 percent to NT$1.44 trillion, beating the previous estimate of an 11.3 percent rise, the institute said.
The IC packaging segment is expected to generate NT$461.5 billion in output, up 9 percent from a year earlier, while the IC testing segment is expected to post output of NT$212.2 billion, up 6 percent from a year earlier, it added.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, has forecast its sales would grow by 24 percent to 26 percent this year in US dollar terms, due to strong demand for high-end processes in artificial intelligence applications.
That is expected to drive up the growth of Taiwan’s IC manufacturing and IC design businesses, analysts said.
In the first quarter, the production value of Taiwan’s semiconductor industry totaled NT$1.48 trillion, falling 0.4 percent from a quarter earlier, but soaring 27.6 percent from a year earlier.
Many customers of Taiwan’s IC industry rushed to place large orders ahead of schedule in the first quarter to avoid US President Donald Trump’s chaotic tariff policy, boosting production in the traditionally slow quarter, the ITRI said.
Looking ahead to the second quarter, the output of Taiwan’s IC industry is expected to hit NT$1.53 trillion, up 20.6 percent from a year earlier and up 2.9 percent from a quarter earlier, the institute said.
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