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Taiwan's semiconductor sector forecast to perform well in 2016

Taiwan's semiconductor sector forecast to perform well in 2016

The output of Taiwan's semiconductor sector is forecast to grow 2.4 percent in 2016, outperforming the global industry, which is expected to post a decline, according to the Market Intelligence and Consulting Institute (MIC).

The semiconductor sector in Taiwan is expected to post steady growth in 2016, and its output is forecast to rise 2.4 percent to NT$2.21 trillion (US$67.16 billion), MIC analyst Chris Hung said Friday.

Hung said he expects Taiwan's contract chip manufacturers to maintain their leading position in advanced process production, while companies producing memory products are set to see business improve after they migrate to the next-generation manufacturing process in 2016.

The growth will stand out in the global industry, output of which is projected to drop 2.2 percent to US$332.4 billion next year, because of declines of computer products and slower growth of smartphone sales, the MIC said.

Taiwan's semiconductor sector only posted 0.9 percent annual output growth this year because of the worse-than-expected economic growth in emerging markets and pressure on pricing of chips, according to the MIC.

In comparison, the global semiconductor output rose 1.2 percent year-on-year to US$339.9 billion in 2015, on slower economic growth in China, sharp drops in the computer market and weaker growth of smartphones, the MIC noted. (By Jalen Chung and Kay Liu)

Updated : 2021-09-27 23:42 GMT+08:00