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Hsinchu science park ranked No. 2 in semiconductor revenue

Hsinchu science park ranked No. 2 in semiconductor revenue

The Hsinchu Science-based Industrial Park, Taiwan's world-class technology hub, is giving California's Silicon Valley a run for the money when it comes to semiconductor revenues.
According to iSuppli's latest report, "Silicon Valley remains the largest region for semiconductor headquarters, despite the rise of other chip hot spots, most prominently Taiwan's Hsinchu City. Hsinchu is the only region that comes close to Silicon Valley in terms of (the) amount of semiconductor revenue, at US$50.2 billion."
"However, the region lacks the Valley's diversification, with Taiwan's semiconductor industry heavily focused on foundry chip manufacturing," iSuppli continued.
Known as the semiconductor capital of Taiwan, the Hsinchu Science-based Industrial Park is home to foundry giants such as TSMC and UMC, and top fabless IC design companies such as Sunplus, Media Tek and Novatek. World renowned technology incubators such as the Industrial Technology Research Institute, and premium universities such as National Tsing Hua University and National Chiao-Tung University are also among the science park's star residents.
Last year, Taiwan accounted for over 68.4 percent of global semiconductor foundry revenue, 25 percent of the world's DRAM production revenue, 23.5 percent of fabless revenue, and 51.2 percent of independent IC packaging revenue.
According to iSuppli, California's Silicon Valley - although its doesn't have much chip production these days - remains the world's preferred location for semiconductor-supplier headquarters, with the region continuing to host the largest and most diverse group of chipmakers of all global electronics hot spots.
Last year, the Valley's 56 semiconductor suppliers posted a combined revenue of US$68.2 billion, up 5.8 percent compared to US$64.5 billion in 2005. This lagged behind worldwide semiconductor growth of 9.6 percent in 2006.
"However, if the results of one company are excluded - Intel Corp. - the region's semiconductor suppliers achieved revenue of US$36.7 billion, up 26.4 percent from US$29 billion in 2005, handily outperforming the worldwide average," iSuppli said.
Semiconductor companies headquartered in the Silicon Valley accounted for 26.1 percent of global chip revenue in 2006. ISuppli estimated that 25 percent of global semiconductor companies are headquartered in Silicon Valley, with 39 of these companies generating annual revenue of more than US$100 million.
The main reason behind the Valley's continued semiconductor success is the diversity of the companies headquartered in the region, iSuppli said.
"This is because beyond electronics, there are other industries operating in the region, from energy to biomedical," said the market intelligence company.
The region has a relatively small presence in mobile communications, however, and Silicon Valley's chipmakers have only a very minor participation in the automotive market, it added.
"While many semiconductor companies have their headquarters located in Silicon Valley, they have moved most of their operations elsewhere. Semiconductor suppliers often locate their management and senior engineers in the Valley, while conducting production and design activities overseas or in other parts of the U.S.," iSuppli said.


Updated : 2021-04-13 10:41 GMT+08:00