TSIA 2005 Statistics on Taiwan IC Industry
2006-03-24
TSIA 2005 Statistics on Taiwan IC Industry

March 24, 2006

According to WSTS, 2005 worldwide semiconductor revenue reached US$227.5 billion, a year-to-year increase of 6.8%. Sales quantity reached 455.5 billion ICs, a 5.1% increase on-year. ASP was US$0.499, a 1.6% up on-year.

NAND Flash, Logic and MPU are the out-performers in 2005. Compared with 2004, NAND Flash grew 63.9%, MPU grew 14.7% due to the strong demand for PCs, and logic grew 16.4%. While DSP declined 2.1% and MCU declined 2.9%. The decline rate of DRAM, SRAM, and NOR Flash was 4.7%, 9.2%, and 12.8%, respectively.

Semiconductor revenue in Asia, the fastest growing area, reached US$103.4 billion in 2005, a 16.5% up on-year.

The TSIA 2005 survey showed that 2005 Taiwan IC revenue (including design, manufacturing, packaging and testing) totaled NT$1,117.9 billion (up 1.7% on-year), with NT$285b in design (9.3% growth), NT$587.4b in manufacturing (down 5.9%), NT$178b in packaging (13.7% increase), and NT$67.5b in testing (up 17%).

Taiwan semiconductor industry fell behind the global market in 2005 mainly because the higher inventory level in 2004 had inflated the 2004 revenue and dragged the growth rate of 2005. The decline of foundry and the DRAM price erosion had also deteriorated the growth of the Taiwan manufacturing sector.

Design
2005 Taiwan IC design revenue was NT$285 billion and grew 9.3% from 2004. Although growth slowed down, it still outperformed the global market. The top 10 IC design companies grew 19.7% in 2005, which was much higher than the 9.3% growth of the Taiwan design sector as a whole.

Manufacturing
Manufacturing sector rebounded in the second half of 2005 in terms of utilization rate and revenue. The increasing capacity and yield of the 12-inch fabs, and the further shrink of process technology have raised the production of DRAM. DRAM price was stabilized because multinationals such as Samsung, Hynix, and Micron had been switching their DRAM production lines to NAND Flash production. Inotera was the out-performer in 2005 due to the sharp capacity increase of its 12-inch fab. Overall, Taiwan foundry revenue reached NT$373.5b, a 6.3% decline on-year. The Taiwan brand products created NT$213.9b, down 5.1%, and the IC manufacturing revenue totaled NT$587.4b, a 5.9% decline.

Packaging and Testing
2005 Taiwan packaging revenue reached NT$178b, a 13.7% growth on-year, with NT$149b from domestic packaging, a 13.6% increase. The increase of packaging ASP by 5% to 10% in 2005 was one of the main contributors. Testing sector, the out-performer among all the sectors, achieved NT$67.5b, a 17% growth on-year. This is due to the growing demand for DRAM testing, capacity control of international IDMs, strong demand for NAND flash testing, and demand for logic and mix-signal testing caused by the hot sale of consumer products such as handsets, game players, and MP3 players.

Prospect
Taiwan IC revenue in 2006 is expected to reach NT$1,296.2b, (15.9% growth on-year), with NT$320b in design (12.3% growth), NT$671b in manufacturing (up 14.2%), NT$220b in packaging (23.6% increase, with NT$186.4b in domestic packaging-up 25.1%), and NT$85.2b in testing (up 26.2%).

Major Indices of Taiwan IC Industry
(NT$: Billion)
2005Q1 2005Q2 2005Q3 2005Q4 2005 2005/2004 2006(e) 2006/2005
Industry revenue 240.7 252.4 297.0 327.8 1,117.9 1.7% 1,296.2 15.9%
 IC Fabless 57.5 64.7 78.0 84.8 285.0 9.3% 320.0 12.3%
 IC Mfg. 130.0 130.6 156.1 170.7 587.4 -5.9% 671.0 14.2%
  Foundry 80.2 82.8 98.0 112.5 373.5 -6.3% 445.0 19.1%
 IC Packaging 37.9 41.0 45.8 53.3 178.0 13.7% 220.0 23.6%
Domestic Pkg. 31.5 34.1 38.4 45.0 149.0 13.6% 186.4 25.1%
 IC Testing 15.3 16.1 17.1 19.0 67.5 17.0% 85.2 26.2%

Source: TSIA 2005 Survey, TSIA project, IEK/ITRI
Note: e*-estimate

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