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Taiwan's semiconductor sector forecast to outpace global industry

Taiwan's semiconductor sector forecast to outpace global industry

Taipei, Sept. 2 (CNA) The Ministry of Economic Affairs (MOEA) said Wednesday that Taiwan's semiconductor sector will record a higher growth rate than the global industry this year and contribute significantly to the domestic economy. Taiwan's integrated circuit business is expected to post NT$2.259 trillion (US$69.08 billion) in sales this year, an annual increase of 5.5 percent and a higher growth rate than the global IC industry, said Deputy Economics Minister Shen Jong-chin (???) at the opening of SEMICON Taiwan, a leading global semiconductor trade exhibition. He however did not give a projection for the growth of the global semiconductor sector. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, had forecast in June an annual growth rate of about 3 percent for the worldwide industry this year. On Tuesday, IC packaging and testing services provider Advanced Semiconductor Engineering Inc. (???) said the global semiconductor industry is likely to grow in 2015 at a rate of up to 5 percent. At Wednesday's opening ceremony, Shen said the domestic semiconductor industry has laid a good foundation for the development of Taiwan's information and communications sector and is vital to the country's economic growth. The semiconductor sector accounts for 30 percent of total sales in Taiwan's electronics industry and contributes about 14 percent to the country's gross domestic product, he said. Vice Premier Chang San-cheng (???) said on the sidelines of the trade show that Taiwan's semiconductor industry is ahead of it global competitors, particularly China and South Korea, mainly because of its advanced technology. However, Mike Liang (???), president of U.S.-based IC packaging and testing services provider Amkor Technology Inc.'s branch in Taiwan, said on the sidelines of the trade show that China may overtake Taiwan in terms of IC production capacity as China is expanding in a bid to reduce dependence on other countries. His views are line with those of other market analysts, who have said that China has intensified its efforts to expand its semiconductor industry and is pouring huge funds into the sector. SEMICON Taiwan, which runs through Friday, features 1,540 booths by 628 exhibitors, the highest number of booths in the show's 20 year history, organizers said. It is expected to attract 43,000 visitors this year, compared with 40,000 last year, according to the organizers. (By Jackson Chang, Jalen Chung and Frances Huang)


Updated : 2021-09-21 00:56 GMT+08:00