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Taiwan semiconductor industry expected to regain world's No. 2 spot

2019/03/21 18:48:03

Taipei, March 21 (CNA) Despite the slowing global economy, Taiwan's semiconductor industry is expected to pass its South Korean counterpart to regain the second spot in global production value this year, the Industrial Technology Research Institute (ITRI) said Thursday.

According to ITRI's Industry, Science and Technology International Strategy Center, the output value of the local semiconductor industry is likely to expand 0.9 percent to NT$2.64 trillion (US$85.75 billion) in 2019, up from NT$2.62 trillion in 2018.

On the basis of those figures, the Taiwanese industry is expected to retake second place in global production value with a market share of 20 percent, second only to the United States, which enjoys a 40 percent market share, the center said.

However, it is forecast that the world's global chip sector will slide by 20 percent this year, which will help Intel Corp. pass Samsung to become the world's top semiconductor maker, with Taiwan Semiconductor Manufacturing Co. ranked third, the center said.

Jerry Peng (彭茂榮), a manager at the Hsinchu-based center, said the global semiconductor market will contract by 3 percent this year at US$454.5 billion, due to the slowing world economy.

The semiconductor industry covers chip design, manufacturing and packaging/testing segments, with the manufacturing segment accounting for more than 50 percent of the industry's total production value.

The chip manufacturing sector comprises the foundry and memory chip segments.

According to Peng, the output of Taiwan's chip manufacturing and packaging/testing segments is No. 1 in the world, accounting for 70 percent and 50 percent of the global market, respectively.

(By Pan Tzu-yu and Flor Wang)