Taiwan to overtake South Korea and become global No.2 for semiconductors

Growth is slowing down in 2019

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Taiwan to return to No.2 in semiconductors.

Taiwan to return to No.2 in semiconductors. (AP photo)

TAIPEI (Taiwan News) - Taiwan is likely to overtake South Korea and return to its position as the global No.2 for the production of semiconductors, the Industrial Technology Research Institute (ITRI) said Thursday.

The country’s total production value for 2019 could reach NT$2.64 trillion (US$85.6 billion) for a global market share of 20 percent, according to a report by the Central News Agency.

The world market was actually expected to shrink by 3 percent to US$454.5 billion (NT$14 trillion) for the current year, with the memory chip sector contracting even further, by 20 percent, ITRI said.

As a result, Intel of the U.S. could expect to leap ahead of Samsung and regain its No.1 position, while Taiwan Semiconductor Manufacturing Co. (TSMC) could be listed No.3 according to revenue.

Looking at countries, the U.S. was certain to occupy a market share of at least 40 percent, while South Korea would be replaced as No.2 by Taiwan, the ITRI report predicted.

The island country’s NT$2.64 trillion figure for 2019 amounted to an increase of 0.9 percent over 2018, when growth still reached 6.4 percent. In some sectors, such as chip packaging and testing, Taiwan still ranked No.1 in the world, the ITRI report said.