TSIA Q3 2002 Report on Taiwan IC Industry
TSIA 2002 Q3 Statistics on Taiwan IC Industry
Nov. 15, 2002

The TSIA third-quarter (Q3) survey showed that the total industry revenue of the Taiwan IC industry (including design, manufacturing, packaging and testing) in this quarter was NTD161.6b, essentially flat compared to the previous quarter (Q2 2002), and a 40% increase against the Q3 2001. Compared to the Q2 2002, of all the revenue generated, the design sector amounted to NTD35.7b, a 3% growth; manufacturing sector reached NTD95.7b, a 1% decrease; packaging sector generated NTD23.5b, a slight growth of 4%; and testing sector created NTD6.7b, up 2%.

Information-related chips accounted for 60% of domestic design products. Driven by the recovering PC demand in Europe, domestic demand of PC chipsets and PC-related peripheral chips increased. It resulted in the revenue growth of these chip makers. However, the weaker demand of the downstream products has dragged the performance of the chip makers in DVD player chipsets, LCD driver and control chips compared to the previous two quarters. Demand of Consumer ICs did not increase much, either. With regard to the niche memory products, demand did not grow and price was still unsteady. Revenues of these makers fluctuated. The Q3 revenue of the IC design sector was NTD 35.7b, a slight increase of 3% from the previous quarter, and increased by 17% compared to the Q3 2001.

The decreased orders from domestic and foreign fabless and IDM companies shank the order volumes, production and the utilization rates of the foundry companies. Some memory companies were turning to foundry business and became the contributors to the foundry revenue. Sales of the foundry sector achieved NTD63.1b, a 7% decrease from the previous quarter. With respect to the other main product of the manufacturing sector, the memory products, the price of SDRAM kept on declining and that of DDR DRAM was getting higher due to the growing effect of the main standard shifting from SDRAM to DDR DRAM. In addition, non-volatile memory and some niche memory products were also contributors to the revenue of the manufacturing sector. Revenue of the memory products totaled NT$25.4B, a 13% increase against the previous quarter.

Overall, the lower order volumes of the foundries, the improved order conditions of memory makers and the increased shipments of PC chipsets amounted the revenue of the IC manufacturing sector to NTD95.7b, a slightly decline of 1% compared to the previous quarter, and a 57% growth compared to the Q3 2001.

The contributions to the packaging revenue in this quarter include (1) the big foreign IDM companies outsourced their packaging and testing capacity and closed up their product lines in packaging and testing; (2) the improved shipments of PC chipsets has boosted the capacity utilization of big high-end packaging companies; (3) the foundries kept on seeking for packaging and testing capacity for their wafer inventories; and (4) sales of the total domestic IC industry grew 7% against the previous quarter. However, the orders for consumer ICs did not increase many. It undermined the order volumes of the middle- and low-end packaging companies. Revenue of the IC packaging sector increased 4% to NTD 23.5b compared to the previous quarter, and up 30% compared to the Q3 2001.

Memory products accounted for 50% of all the testing products. The price down of SDRAM hurt the orders of DRAM testing companies a bit. The slight recovery in sales of PC-related chips improved the orders of logic chips testing. While orders from domestic consumer IC design companies and big foreign flash memory makers were also contributors to the testing revenue. Revenue of the IC testing sector totaled NTD6.7b, a slight increase of 1% from the Q2 2002, and a 29% growth compared to the Q3 2001.

Overall, the flat or slight growth in the Q3 revenue of all the sectors could be attributed to that there was no strong driver for the economic recovery and the weak contribution of the traditional peak season of the second half of the year. Among all the sectors, the packaging sector out performed relatively with a growth of 4% due to the increased orders of high-end packaging.

【News Contact: Dior Chen Tel:+886-3-5913560 Email:dior@tsia.org.tw】