TSIA Q1 2006 Statistics on Taiwan IC Industry
1935-05-29
TSIA Q1 2006 Statistics on Taiwan IC Industry

May 29, 2006

According to WSTS, Q1 2006 worldwide semiconductor revenue reached US$59.1 billion, a year-to-year increase of 7.3% but down 1.3% on-quarter. Sales quantity reached 123.3 billion ICs, a 19.4% increase on-year and up 0.04% on-quarter. ASP was US$0.479, a 10.1% decline on-year and down 1.3% on-quarter.

MCU, DRAM and DSP are the out-performers in Q1 2006. Compared with the previous quarter, MCU grew 6.4% and DRAM grew 5.8%. ROM, NAND Flash, and NOR Flash did not perform well, down 39.7%, 12.8% and 5.4%, respectively, as compared to the previous quarter.

Semiconductor revenue in Asia, the largest semiconductor market, reached US$26.8 billion in Q1 2006, a 13% up on-year but 4% down from previous quarter. Japan market, the fastest growing one in Q1, grew 4.7% on-quarter reaching US$11.4 billion. Monthly revenue in Asia has been growing since January 2006, with 15.8% growth in February, and 12.3% growth in March.

SEMI reported worldwide semiconductor equipment bookings of US$1.355 billion and billings of US$1.298 billion in March. The book to bill ratio as a whole was 1.04, with 1.04 and 1.06 for front-end and back-end equipments, respectively.

The TSIA Q1 2006 survey showed that Taiwan IC revenue (including design, manufacturing, packaging and testing) totaled NT$307 billion (increase 27.6% on-year but decline 6.3% on-quarter), with NT$72.8b in design (grew 26.6% on-year but down 14.2% on-quarter), NT$163.5b in manufacturing (up 25.8% on-year but decline 4.2% on-quarter), NT$49b in packaging (increase 29.3% on-year but down 8.1% on-quarter), and NT$21.7b in testing (increase 41.8% on-year and up 14.2% on-quarter).

Design
The higher base of Q4 2005 has deteriorated the Q1 2006 growth numbers. Thanks to the demand for LCD monitor and LCD TV, LCD driver IC performed well in Q1. Due to the off-season effect, consumer ICs declined. Memory revenue rebounded due to stabilized price of niche products for DVD player and graphic card application, and increased shipments of low-power SRAM used in portable devices such as handsets and PDA. Thanks to new product releases and demand surge for handsets and consumer products, shipments of analog chips continue to grow. Q1 2006 Taiwan IC design revenue was NT$72.8 billion, grew 26.6% on-year but decline 14.2% from Q4 2005.

Manufacturing
On the foundry side, YoY revenue growth of tsmc was 38.9%. 90nm accounted for 20%, increasing from the 17% of previous quarter. Due to cautious expansion plan and strong demand, utilization rate remained high. YoY revenue growth of UMC was 20.2% and utilization rate was 79%. The Q1 2006 foundry revenue totaled NT$105.5 billion, down 6.3% on-quarter. As to DRAM, the increasing capacity and yield of the 12-inch fabs, and the further shrink of process technology have raised the production of DRAM. Nevertheless, supply was under control due to the capacity shift of major players to NAND Flash. Price of DDR2 surged accordingly in Q1. Overall, Taiwan IC manufacturing revenue totaled NT$163.5b, a 25.8% increase on-year.

Packaging and Testing
Thanks to the stable demand from China and Asia-Pacific regions and strong packaging and testing demand for handsets and communication ICs, packaging and testing revenue increased 32.8% compared to Q1 2005 despite of the off-season of Q1. Utilization rate kept at around 90% in Q1 2006. It is expected to continue growing in 2006. Q1 2006 Taiwan packaging revenue reached NT$49b, a 29.3% growth on-year, Testing revenue achieved NT$21.7b, a 41.8% growth on-year.

Forecast
Taiwan IC revenue in Q2 2006 is expected to reach NT$314.5b, (2.4% growth on-quarter), with NT$80b in design (9.9% growth), NT$161.7b in manufacturing (down 1.1%), NT$50.8b in packaging (3.6% increase, with NT$43.1b in domestic packaging-up 2.3%), and NT$22b in testing (up 1.4%).
Major Indices of Taiwan IC Industry
(NT$: Billion)
2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 06Q1/05Q4 06Q1/05Q1 2006Q2(e) 2006(e)
Industry revenue 240.7 252.4 297.0 327.8 307.0 -6.3% 27.6% 314.5 1,296.2
 IC Fabless 57.5 64.7 78.0 84.8 72.8 -14.2% 26.6% 80.0 320.0
 IC Mfg. 130.0 130.6 156.1 170.7 163.5 -4.2% 25.8% 161.7 671.0
  Foundry 80.2 82.8 98.0 112.5 105.5 -6.3% 31.5% 106.8 445.0
 IC Packaging 37.9 41.0 45.8 53.3 49.0 -8.1% 29.3% 50.8 220.0
Domestic Pkg. 31.5 34.1 38.4 45.0 42.1 -6.4% 33.7% 43.1 186.4
 IC Testing 15.3 16.1 17.1 19.0 21.7 14.2% 41.8% 22.0 85.2
Source: TSIA Q1 2006 Survey, TSIA project, IEK/ITRI
Note: e*-estimate
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Email: dior@tsia.org.tw】