Taiwan's Q3 IC output up 9% from Q2 on peak season effects: ITRI

Taipei, Nov. 18 (CNA) The production value of Taiwan's semiconductor industry rose about 9 percent from a quarter earlier in the third quarter of this year as the industry benefited from peak season effects, according to the government-supported Industrial Technology Research Institute (ITRI).

In its latest IEK Current Quarterly Model report released over the weekend, ITRI said the output of the local semiconductor industry stood at NT$1.38 trillion (US$42.46 billion) in the third quarter, up 9 percent from the second quarter.

In the industry, the IC manufacturing segment recorded the best performance in the July-September period in terms of sequential growth after its production value rose 11.1 percent from a year earlier to NT$896.5 billion, the report showed.

The IC packaging service segment came in second after its production value rose 9 percent from a quarter earlier to NT$111.4 billion, followed by IC testing service providers, which as a whole posted NT$50.5 billion in output, up 4.3 percent quarter-on-quarter, the report indicated.

In the third quarter, the IC design segment recorded a 4.2 percent quarter-on-quarter increase in production value totaling NT$325.6 billion, ITRI said.

The four segments of the local semiconductor industry are expected to see output grow in the fourth quarter increasing value to near NT$1.48 trillion, up 6.9 percent from the third quarter, ITRI added.

In 2024, the local semiconductor industry is expected to post NT$5.3 trillion in production value, up 22 percent from 2023 with growth in the IC manufacturing, IC design, IC packaging and IC testing segments estimated to rise 27.5 percent, 16.5 percent, 8.6 percent and 5.2 percent, respectively, ITRI said.

Market analysts said Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, will serve as a driver to growth in the local IC industry in 2024, on the back of robust demand for its advanced 3 nanometer and 5nm processes following the current boom in artificial intelligence development.

At an investor conference held in mid-October, TSMC forecast its sales for this year will grow almost 30 percent from last year in U.S. dollar terms, an upgrade from its previous estimate of a 24-26 percent increase.