According to research of the Taipei-based Market Intelligence & Consulting Institute (MIC) conducted as part of the ITIS project, output of the Taiwanese semiconductor industry is expected to reach NT$1.14 trillion (US$35.14 billion; US$1=NT$32.44) in 2009, declining approximately 13% compared to 2008. Foundry industry production is expected to reach NT$375.5 billion (US$11.58 billion) in 2009, down 16%, while DRAM (Dynamic Random Access Memory) production value is expected to reach NT$111.4 billion (US$3.43 billion). The IC design industry is expected to reach NT$370.2 billion (US$11.41 billion), growing 4.2%.
The first quarter of 2009 marked a low point for the ICT and semiconductor industries. In the second quarter, however, up- and downstream companies simultaneously started to quickly adjust inventories, and the industry supply chain returned to normal supply/demand levels. Benefiting from the recovery of the downstream system industry, semiconductor industry indicators are currently improving. At the same time, due to adjustments of inventory levels, the rebound of the semiconductor industry could be larger in scope than the rebound of the downstream system industry.
Looking at the Taiwanese semiconductor industry, some companies are benefiting from the growth in emerging countries, and some secondary sectors have performed better than the average performance of global industries. Overall, output of the Taiwanese semiconductor industry in the first quarter and second quarter of 2009 is estimated at NT$195.0 billion (US$6.01 billion) and NT$294.0 billion (US$9.06 billion) respectively, down 41% and 16% year-on-year. Output in the second quarter grew 51% compared to the first quarter. In the full-year 2009, Taiwanese semiconductor industry output is expected to reach NT$1.14 trillion (US$35.14 billion), down 13% compared to 2008.
Stimulated by worldwide communications and consumer electronics industries, the worldwide foundry industry continues to rebound in 2009. Despite this rebound, scale of the industry is still expected to decline 20.3% compared to 2008 to US$16.01 billion. The production value of the Taiwanese foundry industry is expected to account for 70% of the worldwide total. In the first and second quarter of 2009, production value of the Taiwanese foundry industry is estimated at NT$52.5 billion (US$1.62 billion) and NT$100 billion (US$3.08 billion). Production value in the third quarter is expected to grow more than 15% sequentially to NT$115.2 billion (US$3.55 billion), which however represents a slight decline compared to the same period last year. In the full-year 2009, Taiwanese foundry industry production value is expected to reach NT$375.5 billion (US$11.58 billion), down 16% compared to 2008.
In the first half of 2009 the Taiwanese DRAM industry was affected by production cuts, and production volume of the industry reached 3.21 million 8"-equivalent wafers, down 45% compared to second half of 2008. Production value of the Taiwanese DRAM industry reached NT$17.8 billion (US$548.71 million) and NT$25.4 billion (US$782.98 million) in the first quarter and second quarter of 2009. The combined production value in the first half of the year declined 40% compared to the second half of 2008. Recently, the production cuts and other strategies of Taiwanese DRAM companies have proven effective, and DRAM prices are already increasing. As for the second half of 2009, electronics companies are relatively upbeat on peak-season demand, and Taiwanese DRAM companies have started to increase production. Taiwanese DRAM industry production volume is expected to reach 4.03 million 8"-equivalent wafers in the second half of 2009, growing 26% compared to the first half of the year. Production value of the industry in the third and fourth quarter of 2009 is expected to hit NT$31.9 billion (US$983.35 million) and NT$36.3 billion (US$1.12 billion) respectively, representing sequential growth rates of 25% and 14%. Total production value of the Taiwanese DRAM industry is expected to reach NT$111.4 billion (US$3.43 billion) in the full-year 2009.
The Taiwanese IC design industry started to show signs of a recovery since the first quarter of 2009, during which production value was roughly similar to the fourth quarter of 2008, reaching NT$71.5 billion (US$2.20 billion). Production value in the second quarter of 2009 saw considerable sequential growth - more than 30% - and reached NT$95.1 billion (US$2.93 billion). The Taiwanese IC design industry is rebounding quicker than the global semiconductor industry. As economies in Europe and the United States are also starting to recover following emerging markets, electronics companies are upbeat on demand in the traditional peak season of the year. It is expected that the Taiwanese IC design industry will continue to grow in the third quarter. The industry's production value for the full-year 2009 is expected to reach NT$370.2 billion (US$11.41 billion), growing 4.2% compared to 2008.
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About MIC
Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm 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
About ITIS
The Industry and Technology Intelligence Services (ITIS) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.