Taiwan's IC Industry Expects Posts Weak Q1, But Expects Strong Q2

Taipei, May 21, 2012 (CENS)--Although Taiwan's semiconductor industry saw its revenue for the first quarter of the year decline 3.1% from a quarter earlier, the industry is projected to see a substantial 14.3% quarter-on-quarter growth in the second quarter, according to market research organization Industrial Economics & Knowledge Center (IEK).

In the first quarter, the local industry scored revenue of NT$360.1 billion (US$12.4 billion at US$1: NT$29), down 3.1% from a quarter earlier, which, however, was only moderate as compared with an average slip of 10% in the same quarters of the past.

The organization estimated Taiwan's IC industry would put out revenue of NT$411.5 billion (US$14.1 billion) in the second quarter, up 14.3% from the first quarter.

IEK concluded that inventory buildup at consumer-electronics and information-technology retailers moderated the Taiwan industry's revenue decline although smartphone market dropped in the meantime.

IEK estimated Taiwan's IC design sector alone will rise 12.5% in the second quarter from the first quarter thanks to strong orders for the chips for low-priced smartphones.

For the island's IC making sector, IEK's estimate the sector's revenue for the second quarter would rise 16.3% from the first quarter thanks to inventory buildups at chip vendors, better-than-expected smartphone market, and projected DRAM sale increase.

The island's IC packaging and test sectors are estimated to see revenues for the second quarter rise 12.1% and 11.9%, respectively, from the first quarter.

As to the outlook of the island's silicon foundry sector, the center projected the sector's revenue for the second quarter to rise 17.8% from the second quarter, to NT$162.7 billion (US$5.6 billion) thanks to excessive demands for high-end foundry capacities.

Totally, Taiwan's IC industry is estimated to generate revenue of around NT$1.6 trillion (US$57.3 billion) this year, up 6.5% from last year.