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| Title: 2010 COMPUTEX TAIPEI-Taiwan Semiconductor Industry Development Expected to Slow Down in the Long Term |
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2009/09/08 |
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Taiwan Semiconductor Industry Development Expected to Slow Down in the Long Term
According to research of the Taipei-based Market Intelligence & Consulting Institute, the worldwide semiconductor market has gradually become mature since 2000, and growth momentum has become weaker. Furthermore, due to the impact of the global financial crisis, worldwide IC production capacity utilization rates in the fourth quarter of 2008 fell below 70%, and overall production capacity growth came to a halt. Production cuts of DRAM manufacturers even caused declines.
The Taiwanese semiconductor industry has also been affected by global developments and has experienced slow growth momentum. It is expected that the Taiwanese industry will rebound starting in 2010. However, growth momentum of downstream 3C industries and the worldwide semiconductor market is slowing down. If there are no relevant policies to stimulate development, it is expected that in the long-term future development of the Taiwanese semiconductor industry will gradually slow down.
Due to the effects of the global financial crisis, 60% of the world's top 25 IC suppliers experienced revenue declines in 2008, and the market has seen consolidation. Among the companies that maintained growth, almost half were IC design companies, with companies in the communications field having a relatively good performance. Wireless communications IC companies even experienced double-digit growth rates.
According to MIC Senior Industry Analyst Chris Hung, "With the development trend of product function integration, in particular communications and multimedia products, IC companies have to possess even more diverse communications and peripheral integration capabilities. The global semiconductor industry will experience consolidation among companies, and Taiwanese small- and medium-sized semiconductor companies will face even more competitive pressure in the future. With the development of new emerging peripheral applications, development of semiconductor manufacturing technologies emerging areas such as MEMS, high-voltage processes, and next-generation memory will be closely watched in the future."
(Photo source: Taiwan Semiconductor Manufacturing Co., Ltd.)
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