Alexa
  • Directory of Taiwan

Output of Taiwan's IC industry forecast to grow modestly in Q2

Output of Taiwan's IC industry forecast to grow modestly in Q2

Taipei, May 7 (CNA) The production value of Taiwan's integrated circuit industry is expected to grow at a mild pace in the second quarter as the business has been facing inventory adjustments, a research report said Thursday. In the report, the Industrial Economics and Knowledge Center (IEK,??????????????) under the government-sponsored Industrial Technology Research Institute (???), said that the output of the local IC business for the second quarter is expected to grow 2.1 percent from a quarter earlier to NT$582.5 billion (US$18.91 billion). In addition to the impact resulting from inventory adjustments, the IEK said, the local semiconductor sector is encountering weakening demand in Europe and emerging markets in the world due to a stronger U.S. dollar, the IEK said. The IEK said that the IC design segment is expected to outperform other segments in the local semiconductor industry in the second quarter in terms of growth rate. The segment is forecast to post NT$151 billion in production value, up 11 percent from a quarter earlier. The IC packaging services segment is expected to record NT$83 billion in production value for the April-June period, up 8.2 percent from a quarter earlier, while the IC testing services segment is likely to register NT$35 billion in output in the quarter, up 9.4 percent, according to the IEK report. The IEK said, however, that the IC manufacturing segment is expected to post NT$313.5 billion in output in the second quarter, representing a sequential drop of 3.8 percent. In the first quarter, a traditional slow season, the production value of the local IC industry totaled NT$570.6 billion, down 3.3 percent from a quarter earlier, the IEK report showed. The output of the IC manufacturing segment fell 0.5 percent quarter-on-quarter to NT$325.9 billion in the January-March period, while the production value of the IC design segment dropped 9.6 percent from a quarter earlier to NT$136 billion, the report indicated. In the first quarter, the output of the local IC packaging services segment fell 2.9 percent from the previous quarter to NT$76.7 billion, while the production value of the IC testing services segment dropped 3 percent to NT$32 billion, the IEK said. (By Jackson Chang and Frances Huang)


Updated : 2021-09-18 19:55 GMT+08:00