Taiwan’s IC output forecast to top NT$4 trillion in 2021

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08/13/2021

Taipei, Aug. 13 (CNA) The annual production value of Taiwan’s integrated circuit industry is expected to surpass NT$4 trillion (US$143.9 billion) for the first time, in 2021, the Industrial Economics and Knowledge Center (IEK) said Friday, a forecast that analysts attributed to strong demand for emerging technologies worldwide and a booming global stay-at-home economy.

The IEK, the market information advisory unit of the Industrial Technology Research Institute, also upgraded its 2021 growth forecast for the IC industry’s output, projecting a 24.7 percent annual increase to NT$4.01 trillion.

In May, the IEK had estimated the semiconductor industry’s 2021 output growth at 18.1 percent and its value at NT$3.8 trillion.

According to market analysts, the upgraded forecast took into account a continued supply shortage in the global semiconductor industry and an increase in pricing power among Taiwan’s IC heavyweights such as Taiwan Semiconductor Manufacturing Co. (TSMC), United Microelectronics Corp. (UMC) and Vanguard International Semiconductor Corp.

TSMC, UMC and many other IC companies reported record high in sales in the second quarter of the year, which is usually a slow season for the industry, and they are expected to continue that performance in the third quarter, the industry’s peak period, analysts said.

In the IEK’s forecast, it said the local semiconductor industry is expected to see quarterly increases in shipments in the second half of the year, paving the way for robust annual full-year growth in output.

The IC industry recorded a production value of NT$986.3 billion in the second quarter of the year, up 9 percent from a quarter earlier, beating the IEK’s previous forecast of a 2.6 percent increase, amid high global demand for internet communications gadgets and automotive electronics devices.

Among the four major segments in the semiconductor industry, the IC designer sector reported the highest sequential growth of 17.9 percent in output, which totaled NT$306.9 billion in the second quarter, according to the IEK.

The IC testing service segment was second, with a 6.3 percent quarterly increase in production value to NT$49 billion, followed by the IC manufacturing segment with 5.7 percent growth to NT$528.4 billion, and the IC packaging service segment, which posted a 3.7 percent rise in output to NT$102.0 billion, the IEK said.

It forecast that the four major IC segments will see a combined output of NT$1.05 trillion in the third quarter, up 6.8 percent from the previous quarter.

Source:Taiwan’s IC output forecast to top NT$4 trillion in 2021 – Focus Taiwan