According to Taiwan's MIC (Market Intelligence & Consulting Institute), an ICT industry research institute based in Taipei, low- and mid-priced Smartphones will continue to play a key role in boosting growth in Taiwan's IC design house industry in 2013. The industry's shipment value will largely depend on the price competition among the subsequent IC solutions. Looking back to 2012, affected by lukewarm economic growth and weaker PC sales, the shipment of corresponding IC solution suppliers declined accordingly. Thus, the industry was mainly bolstered by the fast-growing demand for IC solutions used in Smartphones and tablets, thereby benefiting the corresponding IC solution suppliers in 2012.
Looking at the development of all sectors of Taiwan's semiconductor industry, MIC indicates that Taiwan's design house industry continues to gain from the rise of market demand for low- and mid-priced Smartphones continued whereas Taiwan's fabless IC industry has gained the market leadership by providing communications IC and processors for mid-range and high-end Smartphones and tablets. As for the assembly and testing service suppliers, their partnerships with international and Taiwanese communications IC suppliers have put them at advantage.
Looking at the industry's shipment performance in 2012, the buoyant sales of Smartphones and tablets pushed the industry's shipment volume and value growth and played a key role in bolstering the global IT product market. Thanks to the strong shipment of fabless IC suppliers, the IC manufacturing industry enjoyed strong growth, witnessing a 8.7% year-on-year growth to approximately NT$778.5 billion (US$26.2 billion; US$1 = NT$29.7), followed by the IC design house industry which grew 5.9% year-on-year with the shipment value of NT$422.2 billion (US$14.21 billion); the IC assembly and testing industry grew 2.6% year-on-year with shipmen value reaching around NT$347.6 billion (US$11.7 billion). Shipment value of Taiwan's semiconductor industry totaled around NT$1.55 trillion (US$50 billion) in 2012, representing a 6.6% year-on-year growth.
Looking at the shipment performance of IDM (Integrated Device Manufacturers), the top five chipmakers Intel, Samsung, TI, Toshiba, and Renesas all saw decline in shipment value in 2012. Meanwhile, fabless IC manufacturers such as Qualcomm, Broadcom and Nvidia - which focus mainly on key IC solutions for use in mobile devices - managed to sustain relatively high shipment value growth in 2012.?
Furthermore, Taiwan's IC assembly and testing industry - after seeing its shipment value hit the bottom in the first quarter of 2012 - bounced back and saw sequential growth beginning in the second quarter of 2012 and thereafter. In the first half of 2012, the revenue of vendors in this industry sector totaled around NT$167.1 billion (US$5.62 billion), declining 0.1% compared to the first half of 2011. In the second half of 2012, fueled by the provision of advanced assembly services, the revenue of the assembly and testing industry reached around NT$180.4 billion (US$6.07 billion), up 6.08% and 8.9% compared to the first half of 2012 and the second half of 2011, respectively.
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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