Global semiconductor market is projected to still grow at 4.7% in 2020 due to 5G commercialization and strong demand for HPC (High Performance Computing) products during WFH (Work From Home) amid COVID-19 pandemic, according to MIC (Market Intelligence & Consulting Institute), a government think tank and a leading research institute in Taiwan. "However, the significant reduction in end-user market demand and relatively high chip inventory levels are likely to slow the industry’s growth momentum in the second half of 2020", said Kai-An Cheng, senior industry analyst at MIC. "The market is estimated to grow at 10.1% in 2021 if COVID-19 pandemic can be kept under control by the end of 2020."

Global Semiconductor Market Value, 2011-2021

Source: MC, October 2020

Meanwhile, shipment value of the Taiwanese IC design industry is estimated at 16% in 2020 due mainly to the increasing demand for notebook PCs and multimedia devices amid COVID-19, Huawei’s rush orders for chips on fears of shortage, and the increased demand for 5G wireless networks. The Taiwanese OSAT (Outsourced Semiconductor Assembly and Test) industry’s shipment value is estimated to reach NT$519.7 billion in 2020 owing to the shift in orders from IDMs (Integrated Device Manufacturers). Growth factors in 2020 also include 5G commercialization, stay-at-home economy, and new phone and game rollouts in the second half of 2020. Since Huawei accounts for a majority share of Taiwan’s semiconductor manufacturing industry, the industry has been affected by U.S Ban in the short run. Nevertheless, with nearly full capacity occupied, it is anticipated the industry will still manage to register 19% year-on-year growth in 2020, bolstered mainly by the surging demand for emerging applications with advanced processing technologies.

To further explore the opportunities amid COVID-19 outbreak, we are pleased to announce that MIC has arranged more than 20 topical sessions for the upcoming 33rd MIC Forum, to be held at Shangri-La's Far Eastern Plaza Hotel, Taipei (Taiwan), from October 28 to 30. To know more, you may browse through the Event website (only in Mandarin). 

To know more about this topic, please visit:  The Taiwanese Fabless IC Industry, 2Q 2020, Taiwanese Semiconductor Manufacturing Industry, 2Q 2020, Taiwanese IC Packaging & Testing Industry, 2Q 2020, 2018-2019 Recap and 2020 Forecast for the Semiconductor Industry

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About MIC

Founded in 1987, Market Intelligence & Consulting Institute (MIC) is a government think tank and premier IT industry research and consulting firm based in Taipei, Taiwan. We are dedicated to providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english/