Taiwan’s semiconductor industry expected to grow by 4.5-5.3% in 2019

ITRI says Taiwan’s semiconductor industry output to exceed NT$2.7 trillion in 2019

Taiwan's semiconductor industry set for more growth. (photo by Paolo Neo)

Taiwan's semiconductor industry set for more growth. (photo by Paolo Neo) (By Wikimedia Commons)

TAIPEI (Taiwan News) – Taiwan’s Industrial Technology Research Institute (ITRI, 工業技術研究院) expects Taiwan’s semiconductor industry to grow by 4.5-3.5 percent in 2019, with total output to exceed NT$2.7 trillion (US$87.1 billion), reported CNA.

Taiwan’s semiconductor industry will benefit from leading manufacturers’ advanced technology and rising orders in the year ahead, according to ITRI.

ITRI’s Industrial Economics and Knowledge Center (工研院產業科技國際策略發展所) announced their analysis on Oct. 24, and invited director of the Taiwan Semiconductor Industry Association (台灣半導體產業協會), Nicky Lu (盧超群) and deputy director of the Taipei Computer Association (台北市電腦商業同業), Chang Li (張笠) to speak at the event.

Peng Mao-jung (彭茂榮), director of ITRI’s Industrial Economics and Knowledge Center said that Taiwan’s semiconductor output increased by around 5.9 percent this year, to total around NT$2.06 billion. Looking towards the future, growing demand for AI, Internet of Things (IoT), and automotive electronics will spur future growth for semiconductors.

Peng went on to say that demand in Europe and the U.S. will continue to develop, amid orders of new technology that will drive industry growth by between 4.5 and 5.3 percent in 2019.

Despite strong demand for semiconductors, uncertainty surrounding the U.S.-China trade war and cooling of demand for smartphones and computers is likely to have an adverse effect, according to Peng. He added that increased competition at low and medium technology tiers also poses uncertainty.

ITRI has developed three recommendations for the semiconductor industry. These three recommendations are to make full use of the benefits of clustering complimentary companies together, expanding new products relating to AI and IoT, and to further build a transnational biosphere for semiconductors.

Nicky Lu said that international uncertainty will cause some turbulence in Q4 2018 and Q1 2019. He added that it is necessary to be cautious about the global economy, but one should not be pessimistic.