Taiwan IC manufacturing recession IC design package test growth

Taiwan Semiconductor Industry Association (TSIA) recently announced the results of the investigation of IC industry in Taiwan area in 2005, the overall scale of industrial output in Taiwan in 2005 including IC design, manufacturing, packaging, testing, NT $117 billion 900 million (Note: 1 yuan equivalent to NT $4.04 yuan), an increase of 1.7% compared to 2004. Among them, the design industry output value of NT $285 billion, compared with 2004 growth of 9.3%; manufacturing of NT $587 billion 400 million, compared with 2004 5.9% decline; packaging industry is NT $178 billion, compared with 2004 growth of 13.7%; testing industry of NT $67 billion 500 million, compared with 2004 growth of 17%.

Compared with the global semiconductor market, in 2005 the annual growth rate in Taiwan is lower than the global performance. TSIA said the main reason is that excessive inventory level increased in 2004, the Taiwan area IC supplier revenue increase, resulting in a relatively high base of the 2005 growth rate decreased. In addition, in the first half of, Taiwan IC manufacturing industry in the weak demand for foundry, as well as the impact of a sharp decline in DRAM prices, so that in 2005 the output value of the manufacturing sector in the region of Taiwan IC recession. But the Association believes that in 2005 the output value is quarter by quarter growth, the future development of IC industry in Taiwan is still worth looking forward to.

In the area of Taiwan IC design industry, TSIA pointed out that due to the impact of the global environment, as well as the product line in a period of adjustment, the industry in 2005 revenue of NT $285 billion, compared with 2004 growth of only 9.3%; although the growth momentum has slowed down, but still better than the global semiconductor sales value growth rate.

In 2004 because of the IC design industry in Taiwan area growth rate as high as 37%, in the economy better circumstances, medium-sized company with relatively good performance; large-scale industry is limited to large scale, and product line lean, Taiwan area in 2004 before the ten IC design company revenue growth of only 15.6%. But in a more balanced economy in 2005, the company total revenue grew 19.7%, far higher than the IC design industry in Taiwan's 9.3% growth rate, so large and small companies suffering from a single product and business cycle of suffering.

Outlook 2006, TSIA estimated the overall IC industry output value in Taiwan area up to 12962 billion NT dollars, compared with growth of 15.9% in 2005. Design of the industry output value of NT $320 billion, the growth rate of 12.3%; manufacturing of NT $671 billion, a growth rate of 14.2% for the packaging industry; (state + foreign) for NT $220 billion, the growth rate of 23.6% (among them, China, capital package value is 186 billion 400 million NT, the growth rate was 25.1%); testing industry NT $85 billion 200 million, the growth rate is 26.2%.