TSIA Q2 2003 Statistics on Taiwan IC Industry
2003-08-13
TSIA Q2 2003 Statistics on Taiwan IC Industry
Aug. 12, 2003

The TSIA second-quarter (Q2) survey showed that total revenue of the Taiwan IC industry (including design, manufacturing, packaging and testing) in this quarter was NTD184.5b, up 12.8% over the same period of last year. Compared to Q2 2002, of all the revenue generated, the design sector contributed NTD38.2b, a 6.6% growth; manufacturing sector amounted to NTD111.6b, a 15.3% increase; packaging sector (domestic and foreign-invested) generated NTD26b, a 14.3% rise; and testing sector created NTD8.7b, up 7.3%. Compared to Q1 2003, each sector had a growth rate between 2% and 26%.

Performance of relevant designers (chipsets and internet communication chips) was not good due to the continuing soft demand for PC and PC related chips. Revenue and profit of niche memory products designers improved a little due to the price up of these products. While shipments of DVD player chips decreased because of the traditional second-quarter off season of the PC optical storage chips. LCD driver and controller chips designers were still the outperformers because of the continuing strong demand. Driven by the stable shipments of temperature control ICs and MCU, revenue of consumer IC chips designers grew steadily. Companies doing USB interface design also had shining performance. However, impacted by SARS, revenue of designers with shipment to China declined. The Q2 revenue of the IC design sector was NTD 38.2b, a 2% growth from the previous quarter.

Thanks to the resurging orders on the communication and consumer-related product lines, the utilization rate of foundries has recovered to more than 80%, and the wafer shipments increased greatly as well. Compared with Q1 2003, revenue of foundries increased by over 20% to reach NTD77.1b. With respect to DRAM market, the continuing weak demand for PC and the outbreak of SARS in Asia-Pacific market had lowered the price of the mainstream DRAM compared with its price up in early April. However, EU’s and US’s punitive countervailing duty imposed on Hynix has threatened Hynix from continuing dumping. Besides, expecting economic recovery will occur in the second half year, big PC makers have been shipping steadily. All of these have sustained the average shipment price (ASP) of DRAM from dropping drastically. Bouncing from the price down in June, ASP of 256Mb SDRAM and DDR DRAM have recovered to around USD3.5 and USD4, repectively. Revenue of home DRAM makers grew by 10% against Q1 2003. Overall, revenue of the manufacturing sector totaled NT$111.6b, up about 20% against the previous quarter.

Thanks to the continuing outsourcing of foreign IDMs for packaging and testing capacity, orders for consumer IC chips, foreign graphic chips, home PC chipsets and hi-speed network chips have filled in the high-end packaging and testing capacity of domestic first-tier companies. Some European and US system companies have adjusted their allocation of product lines in China to meet the unexpected needs. The increasing yields of DRAM die due to the DRAM price up in early April and early June and the continuing expansion of 12” fabs and high-end capacity of home DRAM makers have boosted the orders of memory packaging and testing companies. Besides, the orders from LCD driver ICs and the increased order volume received by foundries have improved the downstream packaging and testing order conditions. Totally, revenue of the domestic IC packaging sector was NTD 26b, up 7% against Q1 2003; revenue of the IC testing sector was NTD 8.7b, a 12% increase against Q1 2003.

Major Indices of Taiwan IC Industry (NTD: Billion)
2002 2003Q1r* 2003Q2p* 03Q2/03Q1 2003Q3e* 2003e*
Industry Revenue 526.9 163.0 184.5 13.2% 220.0 652.9
 IC Fabless 122.0 37.4 38.2 2.0% 55.5 192.2
 IC Mfg. 302.5 93.4 111.6 19.5% 121.8 455.2
  Foundry 204.8 61.2 77.1 26.1% 79.2 299.5
 IC Packaging 77.1 24.4 26.0 6.6% 31.8 115.6
Domestic pkg. 66.0 20.5 21.9 6.7% 25.6 95.2
 IC Testing 25.3 7.7 8.7 11.9% 10.8 38.4
Note:r*-revise,p*-preliminary,e*-estimate。
Source: TSIA Q2 2003 Survey, TSIA project, IEK/ITRI (August, 2003)





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