TSIA Q3 2003 Statistics on Taiwan IC Industry
TSIA Q3 2003 Statistics on Taiwan IC Industry
Nov. 13, 2003

According to WSTS, revenue of worldwide semiconductor industry in Q3 reached US$43.32b, a 13.7% increase against Q2 2003. Accumulated revenue of the previous three quarters totaled US$118.3b, up 14.7% over the same period of 2002. According to SICAS, capacity of worldwide foundry in Q2 2003 averaged 1,308 thousands of wafer-starts per week, a 4.7% growth against Q1 2003. The Q2 utilization rate increased from Q1 level of 82.8% to 85.9%. Although the SICAS Q3 data collection is still ongoing, utilization rate of foundries are expected to increase in line with the order growth. The data collected showed that the semiconductor industry is recovering. The WSTS forecast also indicated that growth rate of global semiconductor industry in 2003 and 2004 would be 16.6% and 20.3%, respectively.

According to IC Insight, the H1 2003 revenue of TSMC has pushed TSMC into the world 10th largest IC company. TSMC and UMC are still ranked the top and the second in the global foundry market.

The TSIA third-quarter (Q3) survey showed that total revenue of the Taiwan IC industry (including design, manufacturing, packaging and testing) in this quarter was NTD223.3b, up 35.7% over the same period of last year. Compared to Q3 2002, of all the revenue generated, the design sector contributed NTD50b, a 38.2% growth; manufacturing sector amounted to NTD130.9b, a 36.7% increase; packaging sector (domestic and foreign-invested) generated NTD31.5b, a 27.8% rise; and testing sector created NTD11b, up 36.1%. Overall, each sector had a growth rate between 17% and 31% compared to the previous quarter.

PC-related chips played a critical role in the Q3 growth of IC design sector. Intel’s promoting Centrino and the price down of major notebook makers had boosted revenue of PC chipset and peripheral-related product makers. The growth in consumer IC revenue was attributed to the traditional Q3 high season effect and the success of new product allocation of major consumer IC makers (e.g. DVD player chip, digital camera chip, digital TV chip…). Driven by strong demand of DVD player and increasing shipment of LCD monitor, relevant chipmakers had a shining performance. With respect to niche memory product, revenue was boosted due to the increasing demand of DDR DRAM for graphic cards. Q3 revenue of the IC design sector was NTD 50b, a 30.6% growth from the previous quarter.

In line with the order growth in 3C product lines such as information, communication, and consumer ICs, the utilization rate and wafer shipment of TSMC increased in Q3. Revenue grew by 10% against previous quarter. At UMC side, orders from the design houses of UMC group and foreign graphics chipmakers were the major contributors to its revenue in Q3. However, the lower order volume in its communication product line has made its Q3 revenue even against Q2. Compared with Q2 2003, revenue of foundries increased by 7% to reach NTD82.5b.

With respect to DRAM market, the increasing capacity and yield of DRAM 12-inch fabs, the further micronization of process technology, the increasing yield of DRAM dies and the steady shipment of major PC makers were all the contributors to the price stability of main-stream DRAM. The sales growth of PC chipsets and PC I/O chips were driven by the recovering demand of PC. Revenue of non-volatile memory makers increased as well. Production value of domestic IC grew by about 40% in Q3 against Q2. Overall, revenue of the manufacturing sector totaled NT$130.9b, up 17.3% against the previous quarter.

Thanks to the continuing outsourcing of foreign design houses and IDMs for packaging and testing capacity, orders for high-end packaging such as BGA, CSP and FC, and high-end testing such as mixed signal and high frequency chips increased. Price of DRAM packaging and testing was up due to the yield enhancement of DRAM dies and the recent price up of DRAM. Besides, the revenue up of designers, manufacturers and domestic IC makers were also the contributors to the revenue growth of the other packaging and testing companies. Totally, revenue of the domestic IC packaging sector increased by 21.1% to reach NTD 31.5b in Q3 against Q2, revenue of the IC testing sector was NTD 11b, a 26.7% increase against Q2 2003.

Major Indices of Taiwan IC Industry (NTD: Billion)

2003Q1r* 2003Q2 r* 2003Q3 p* 03Q3/02Q3 03Q3/03Q2 2003Q4 e* 2003 e*

Industry Revenue 164.5 184.5 223.3 35.7% 21% 253.6 824.3
 IC Fabless 36.2 38.2 50 38.2% 30.6% 62.1 187.7
 IC Mfg. 95.7 111.6 130.9 36.7% 17.3% 144.3 480.1
  Foundry 62.9 77.1 82.5 31.1% 7% 90.5 311.3
 IC Packaging 24.6 26 31.5 27.8% 21.1% 33.7 115.6
Domestic pkg. 24.2 21.9 25.6 26.7% 16.7% 27.1 95.2
 IC Testing 8 8.6 11 36.1% 26.7% 13.6 40.9

Source: TSIA Q3 2003 Survey, TSIA project, IEK/ITRI (Oct. 2003)

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