TSIA 2003 Statistics on Taiwan IC Industry
TSIA 2003 Statistics on Taiwan IC Industry
March 11, 2004

The US-Iraqi war and SARS outbreak in H1 2003 has made the recovery of global economy more challenging. However, the overall market steadily improved in the last half. Companies’ increasing IT spending had boosted demand for upper and down stream electronic products. Overall, global semiconductor industry performed better in 2003 than 2002.

According to the WSTS, revenue of worldwide semiconductor industry in 2003 reached US$166.4b, an 18.3% increase against 2002. According to the SICAS, capacity of worldwide foundry in Q4 2003 averaged 1,370 thousands of wafer-starts per week (in 8” equivalent) and utilization rate hit 91.9%, the highest level since year 2001. IC-Insights and Dataquest had optimistically updated their forecast of 2004 global semiconductor industry to a growth rate of 27.1% and 20.1%, respectively.

The TSIA year 2003 and Q4 2003 survey showed that revenue of the Taiwan IC industry (including design, manufacturing, packaging and testing) in 2003 totaled NTD818.8b, up 25.4% from 2002. Compared to 2002, of all the revenue generated, design sector contributed NTD190.2b, a 28.7% growth; manufacturing sector amounted to NTD470.1b, a 24.2% increase; packaging sector (domestic and foreign-invested) generated NTD117.6b, a 24.1% rise (domestic-invested packaging occupied NTD 97.6b, up 23.9%); and testing sector created NTD40.9b, up 28.6%. Overall, each sector had an over 20% growth against 2002. Compared with the 18.3% growth of global semiconductor market, Taiwan IC companies out-performed.

PC-related chips played a critical role for design revenue in 2003. Although the US war on Iraq and SARS had discouraged demand for PC, Intel’s promoting Centrino CPU and the price cut of major notebook makers had boosted demand for PC and PC-related chips. Revenue of companies in PC chipset and peripheral-related product design rose in H2. Driven by demand for down stream products, design houses in DVD player, LCD driver, controller, USB2.0, etc. performed shiningly. The steady shipment of other consumer ICs was also a contributor to the out-performance of consumer application ICs.

With respect to niche memory products, thanks to the hot sale of software for PC games and online games, and requirement for higher quality PC image and sound, demand for high-end graphics card boosted. It also resulted in the demand surge of DDR DRAM for graphics card. Some DRAM suppliers allocated their product lines to produce Flash. It then resulted in the price up of graphics card DRAM in H2 due to the comparatively tight supply. The price up also benefited the revenue of domestic memory designers. Shipment of DRAM used for DVD data read buffer increased in line with the shipment growth of DVD players. Logic chip was also another contributor to design revenue. Totally, revenue of the IC design sector reached NTD 190.2b in 2003, a 28.7% growth from 2002.

Thanks to the increased orders from domestic and foreign designers and IDMs, order volume, utilization rate, and wafer shipment of Foundries increased in 2003. Some memory makers’ transfer to foundries and revenue from 6” discrete wafer foundries such as Episil and Antek were also contributors to foundry revenue. Compared with 2002, revenue of Taiwan foundries increased by 25.3% to reach NTD309b in 2003.

With respect to DRAM market, the increasing capacity and yield of DRAM 12-inch fabs, and the further micronization of process technology had increased the production of DRAM dies. The steady shipment of major PC makers also helped the price stability of main-stream DRAM. Taiwan DRAM revenue grew 30% in 2003. Driven by the recovering demand of PC, sales of PC chipsets and PC I/O chips rose. Revenue of non-volatile memory makers increased as well. Production value of Taiwan brand products grew by 22.2% in 2003 to reach NTD161.1b. Totally, revenue of the manufacturing sector amounted to NT$470.1b in 2003, up 24.2% against 2002.

Benefited from capacity outsourcing of foreign fabless companies and IDMs, orders for high-end packaging such as BGA, CSP and FC, and high-end testing types such as mixed signal and high frequency increased. Orders for LCD driver ICs had boosted revenue of TCP packaging companies. Other contributors to the growth of packaging revenue included orders for consumer ICs, capacity outsourcing of Flash makers from the US and Japan and the 25.7% growth of Taiwan brand products. Revenue of the domestic IC packaging sector increased 23.9% to reach NTD97.6b in 2003.

Memory products accounted for about 50% of total testing products. Driven by the increased production of DRAM dies and orders from Promos, DRAM accounted for more than 30% of testing products. Another contributor to the 50% occupation of memory products was the increased orders from foreign companies for Flash. The steady testing demand for consumer ICs and PC-related chips had benefited the order condition of logic testing. Revenue of the IC testing sector was NTD40.9b, a 28.6% increase against 2002.

Major Indices of Taiwan IC Industry (NTD: Billion)
2001 2002 2003 2003/2002 growth rate
Industry Revenue 526.9 652.9 818.8 25.4%
 IC Fabless 122.0 147.8 190.2 28.7%
 IC Mfg. 302.5 378.5 470.1 24.2%
  Foundry 204.8 246.7 309.0 25.3%
 IC Packaging 77.1 94.8 117.6 24.1%
Domestic pkg. 66.0 78.8 97.6 23.9%
 IC Testing 25.3 31.8 40.9 28.6%

Source: TSIA 2003 Survey, TSIA project, IEK/ITRI (March 2004)

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