Alexa

Taiwan: Taiwan expected to remain world's top semiconductor equipment market

Taiwan: Taiwan expected to remain world's top semiconductor equipment market

Taiwan is expected to remain the world's largest semiconductor equipment market this year as the sector's global market continues to pick up steam, a global industry association said Tuesday.

The total output of semiconductor equipment is expected to amount to US$44.33 billion globally in 2011, up 12.1 percent from the year- earlier level, the Semiconductor Equipment and Materials International (SEMI) forecast.

Taiwan's semiconductor equipment market reached US$11.19 billion in 2010, and is expected to register a 5.1 percent decline to US$10.62 billion this year.

Despite the slight decline, Taiwan, which the association attributed as the world's "largest foundry and advanced packaging base," will remain the world's largest semiconductor equipment market this year, it forecast.

In 2010, the global output of semiconductor equipment surged a whopping 148 percent year-on-year to US$39.54 billion. This year, the output is expected to soar further to US$44.33 billion, a figure that will be the second-highest on record, second only to US$48 billion in 2000, the association said.

SEMI forecast that the global output of wafer processing equipment will top US$35.1 billion, up 18.8 percent year-on-year, while the testing and assembly/packaging markets will slide 5.5 percent and 18 percent, respectively, to US$3.92 billion and US$3.18 billion.

SEMI forecast that the U.S. semiconductor equipment market will jump by 61 percent to US$9.25 billion this year, overtaking South Korea as the world's second-largest market behind Taiwan.

South Korea, meanwhile, will be the third-largest, with a market worth US$7.98 billion, down 4.2 percent from the 2010 level, SEMI said.