After experiencing subdued demand in the consumer market throughout 2022, Taiwan's IC design and packaging/testing sectors, also known as OSAT (Outsource Semiconductor Assembly and Testing), demonstrated lackluster performance in the latter half of 2022. The memory industry, in particular, faced a severe downturn. However, buoyed by robust growth in the wafer foundry sector, the Taiwanese industry's shipment value still surpassed NT$4 trillion (US$125.8 billion; US$1= NT$31.8), outperforming the global average, according to MIC (Market Intelligence & Consulting Institute).

Taiwan Semiconductor Industry Shipment Value by Sector, 2015-2024

Note: US$1=NT$31.5
Source: MIC, October 2023

As the semiconductor industry enters a phase of inventory adjustment in 2023, IC design and memory sectors, primarily focused on consumer end-applications, are grappling with a situation of declining demand and oversupply. This ripple effect extends to the wafer foundry and OSAT industries. Nevertheless, MIC anticipates that the industry will enjoy a 15.7% growth in 2024 compared to 2023, with the memory and IDM (Integrated Device Manufacturing) industry sector experiencing the highest growth rate of 20%, followed by the foundry's 15%.

Established in 1987, MIC is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in the Asia Pacific region.

To know more about this topic, please visit: 2022 Recap and 2023 Development of the Worldwide Semiconductor Foundry Industry, Development of the China IC Packaging and Testing Industry and Key Players, Development Highlights of Taiwan's Semiconductor Industry, 2Q 2023 (pre-order), Taiwan IC Packaging and Testing Industry, 2Q 2023, Taiwan Fabless IC Industry, 2Q 2023, Taiwan Semiconductor Manufacturing Industry, 2Q 2023

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