IC industry output to grow more than 20 percent: TSIA


November 16, 2020

The production value of Taiwan’s integrated circuit (IC) industry is expected to grow 20.7 percent year-on-year this year on the back of a booming stay-at-home economy and emerging technologies, the Taiwan Semiconductor Industry Association (TSIA, 台灣半導體協會) said in a report on Friday.

The association had earlier estimated growth of 12.6 percent.

Production value of the IC industry — ranging from manufacturing to design, packaging and testing — is forecast to reach NT$3.21 trillion (US$111.28 billion) this year, TSIA said.

The IC manufacturing segment is expected to see output rise by an annual 23.4 percent to NT$1.81 trillion, the IC design segment is to increase by 22.7 percent to NT$850.3 billion, the IC packaging segment is to rise 9.4 percent to NT$379 billion, and the IC testing segment is to grow 11.7 to NT$172.5 billion, it said.

The higher output is being boosted by robust demand for notebook and tablet computers, monitors, TVs, and communication devices for remote work amid the COVID-19 pandemic, it added.

The favorable circumstances are expected to continue into the fourth quarter of the year, the association said, adding that the industry is unlikely to falter during what is usually a slow season this quarter.

Output of the domestic IC industry in the fourth quarter is expected to rise 1.3 percent quarterly to NT$878 billion, while contract chipmakers, such as Taiwan Semiconductor Manufacturing Co (台積電) and United Microelectronics Corp (聯電), are expected to see record sales, TSIA said.