Taiwan – Semiconductor Revenue Surge to NT$ 299.4 Billion in Q2

 

Industrial Economics and Knowledge Center (IEK), a government supported market research institute in Taiwan, has said that Taiwan’s semiconductor industry generated revenue of NT$ 299.4 Billion (US$ 9 Billion at US$1:NT$33) at a quarterly growth rate of 47.1% in the second quarter of 2009, while the global market grew at 16.9%, as reported by CENS.

 

The chip design segment of Taiwan’s semiconductor industry alone yielded NT$ 93.2 Billion (US$ 2.8 Billion) in the second quarter, an increase of 24.6% in its previous quarter. The revenue from chip making segment stood at NT$ 136.2 Billion (US$ 4 Billion), an increase of 69.2% on a quarterly basis.

 

The Institute ascribed strong growth in revenue of Taiwan’s semiconductor industry to high demand from mainland China that is riding high on the government stimulus package and replenishment of inventories by electronics retailers.

 

The rebound in the semiconductor industry is expected to continue in the domestic market on the back of inventory replenishment by retailers and government’s measures of supporting consumer spending.

 

Moreover, Industry and Technology Intelligence Services (ITIS), has projected positive outlook for the industry with rise in revenue for the current year. This is the second time when the research house has revised its projection.

 

According to a research report "Semiconductor Industry Forecast to 2012” by RNCOS, Taiwan has been a home of diverse industries that support its semiconductor industry. Most of these industries play a critical role in the development of Taiwan’s economy.

 

Industries that actually help the Taiwan’s semiconductor industry to grow include computer and electronics hardware, distribution and logistics, manufacturing services, finance, chemicals and communications equipment.

 

Although Taiwan’s IC industry has benefitted significantly from the stimulus package given by the Chinese government to its industrial sector that fueled demand for Taiwan’s products, exports of electronic products and equipments to other key destinations like the US and European countries have tumbled as they have been reeling under the ongoing recessionary pressure. This could put negative impact on the country’s electronics industry production.

 

A Research Analyst at RNCOS said, “Seasonal demand and rising consumer confidence worldwide are expected to boost the Taiwanese semiconductor companies’ factory usage despite the sharp downturn in the global economy. Hence, Taiwan’s semiconductor industry will gain in the third quarter.”