The production value of Taiwan’s semiconductor industry in the third quarter rose about 9 percent from a quarter earlier, as the industry benefited from peak-season effects, the Industrial Technology Research Institute (ITRI, 工業技術研究院) said on Friday.
Output in the third quarter stood at NT$1.38 trillion (US $42.42 billion), up from NT$1.27 trillion in the second quarter, the government-funded institute said in its IEK Current Quarterly Model report.
Within the chip industry, the IC manufacturing segment recorded the best performance from July to September, with production value rising 11.1 percent from the previous quarter to NT$896.5 billion, the report showed.
Photo: I-Hwa Cheng, Bloomberg
The IC packaging service segment came in second, rising 9 percent to NT$111.4 billion, followed by IC testing service providers, which posted NT$50.5 billion, up 4.3 percent, the report showed.
The IC design segment ranked fourth, climbing 4.2 percent to NT$325.6 billion, the institute said.
The four segments of the local semiconductor industry are expected to see output grow in the fourth quarter, with output value increasing 6.9 percent sequentially to NT$1.48 trillion, it added.
This year, the local semiconductor industry is expected to post NT$5.3 trillion in production value, up 22 percent from last year, with growth in chip manufacturing, design, packaging and testing estimated to rise 27.5 percent, 16.5 percent, 8.6 percent and 5.2 percent respectively, the ITRI said.
Analysts said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, would serve as a driver to growth in the local IC industry this year, on the back of robust demand for its advanced 3-nanometer and 5-nanometer processes following the current boom in artificial intelligence development.
At an investors’ conference earlier last month, TSMC forecast that sales this year would grow almost 30 percent from last year in US dollar terms, up from its previous estimate of 24 to 26 percent growth.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS