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Taiwan’s Semiconductor Industry Records Fastest YOY Growth
Jan 06, 2010

Taiwan’s semiconductor manufacturing equipment billings has posted the fastest year-on-year growth in the backdrop of inflating demand for electronic devices worldwide.
Semiconductor Equipment and Materials International (SEMI) and Semiconductor Equipment Association of Japan (SEAJ) have stated that Taiwan’s semiconductor manufacturing equipment billings has recorded the fastest year-on-year growth, as reported by Fabtech.
The billings posted a rise of 76% in the third quarter of 2009 on the back of high spending on foundry by Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC).
Furthermore, Taiwan’s semiconductor industry is expected to witness the production value growth of 17.8% next year (2010) on account of recovery from the global economic crisis that severely hit the industry. Since the second quarter of 2009, the industry’s output has expanded, which signifies eroding impact of recession on semiconductor manufacturing.
Apart from this, the growth is driven by soaring demand for Smartphones, 3G enabled handsets and Netbooks worldwide. Taiwan is placed among the biggest exporters of electronic goods. High demand from overseas countries has resulted in large number of orders placed with Taiwan, supporting growth in the semiconductor industry.
However, major Taiwanese export destinations were severely cramped by the 2008 financial crisis, and its impact has fallen on the country’s electronic export. The semiconductor industry has also failed to cope with bad economic conditions and witnessed extensive damage, but the conditions are getting better with the recovery of economies in leading exporting destinations. Hence, Taiwan’s semiconductor industry will see an upward trend in terms of sales with the improvement of business environment.
RNCOS, a leading market research firm, has asserted that the demand for semiconductor equipments will soar with the expected rise in semiconductors demand in Taiwan. The firm’s report “Semiconductor Industry Forecast to 2012” states that Taiwan’s semiconductor equipment market will exceed CAGR of 36% by 2012.
Moreover, the production value of Taiwan’s IC design industry is expected to grow by 3.1% this year (2009) and will further expand by 16.4% in 2010. The global status of Taiwan’s IC design has been consistently rising for past few years and domestic companies contributed 18.4% to the world’s 20 largest IC designers in 2008, an increase from 14.1% in 2001.
A Senior Research Analyst at RNCOS said, “Taiwan should cooperate with China in order to expand the IC products market. Through cooperation, both the countries will succeed in adopting a shared standards set for mobile telecommunications, wireless networking, digital radio, medical electronics and automobile electronics, which will enable them to take their semiconductor industries to new heights.”
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