TSIA Q1 2004 Statistics on Taiwan IC Industry
TSIA Q1 2004 Statistics on Taiwan IC Industry
May 24, 2004

According to the WSTS, revenue of worldwide semiconductor industry in Q1 2004 reached US$48.3b, a 32.3% increase against Q1 2003; sales quantity reached 84.3b ICs, grew 21.1% on-year. Although the SICAS data has not been available, the overall utilization rate is predicted to hit over 90%, based on the shining financial statements of major semiconductor companies and the full capacity utilization of TSMC and UMC.

The TSIA Q1 2004 survey showed that revenue of the Taiwan IC industry (including design, manufacturing, packaging and testing) totaled NTD240.2b, up 42.5% on-year. Compared to Q1 2003, of all the revenue generated, design sector contributed NTD57.6b, a 39.5% growth; manufacturing sector amounted to NTD136.9b, a 46.6% increase (Foundry comprised NTD87.1b, grew 42.3%); packaging sector (domestic and foreign-invested) generated NTD33.4b, a 30.4% rise (domestic-invested packaging occupied NTD28.2b, up 34%); and testing sector created NTD12.3b, up 49.2%. Overall, each sector had a year over year revenue growth of over 30%, and a growth of 1.9% over the high season of Q4 2003.

The pricing competition of motherboard makers, and ongoing new generation transition has weakened the revenue of PC-related chipsets a bit. New consumer IC products such as DVD Recorder chip, digital camera chip, and digital TV chip were contributors to the design revenue. The increasing shipment of LCD panel has boosted revenue of LCD driver IC makers. Contributions from niche memory products such as DDR DRAM used for graphics card, DRAM for DVD player and 1T-SRAM for mobile phone, have increased revenue of memory IC designers. The strong demand for USB and flash memory card also boosted revenue of flash chip and related controller IC chip designers. Driven by the growing demand for MP3 and CD, designers in sound frequency chip performed shiningly. Totally, revenue of the IC design sector reached NTD 57.6b in Q1 2004, a 4.7% growth over previous quarter, and a 39.5% growth year over year.

The strong economic situation has boosted demand for foundry. Wafer shipments of TSMC and UMC continue growing and the utilization rate has hit 100%. The strong demand for LCD driver IC also boosted revenue of foundries in smaller size wafers such as Episil, Antek, and AMPI. Revenue of Taiwan foundries increased by 42.3% on-year, reaching NTD87.1b; however, compared with Q4 2003, foundry revenue dropped a bit by 1.2%.

The increasing capacity and yield of DRAM 12-inch fabs, and the further micronization of process technology had increased the production of DRAM dies. Demand for both standard and niche DRAM was getting stronger. The stable spot price of DRAM at USD5 also helped the revenue growth. Totally, revenue of the manufacturing sector reached NT$136.9b, up 2% over previous quarter, and a 46.6% growth over Q1 2003.

The packaging capacity jam benefited from capacity outsourcing of foundries and IDMs has made the packaging sector the fastest recovering sector in 2003. Utilization rate of high-end packaging has hit 100%. Packaging for IC products were being upgraded to Flip chip, BGA, etc. For example, Flip Chip, originally used in Intel CPU only, is utilized in Graphics and Chipsets presently. Benefited from the strong shipments of communication products such as handsets, demand for CSP, which meets the need for smaller size packaging, increased. Consequently, Taiwan companies investing in high-end packaging in the past three years, could benefit from the rocket demand for the high-end packaging. Revenue of domestic IC packaging sector increased 30.4% on-year, reaching NTD33.4b.

Memory is the major product type for testing sector. As the DRAM makers entering OEM market, and production of 12” fabs increasing, demand for DRAM testing boosted. Driven by the surged testing demand for NAND Flash, Driver IC and mixed-digital IC, both price and revenue of testing companies surged. Revenue of the IC testing sector was NTD12.3b, a 49.2% increase on-year.

Major Indices of Taiwan IC Industry
(NTD: Billion)
2003Q4 2004Q1p* 04Q1/03Q4 04Q1/03Q1 2004Q2e* 04Q2e/04Q1
Industry Revenue 235.1 240.2 2.2% 42.5% 252.2 5.2%
IC Fabless 54.4 57.6 5.9% 39.5% 64.5 12.0%
IC Mfg. 134.3 136.9 2.0% 46.6% 141.7 3.5%
  Foundry 88.2 87.1 -1.2% 42.3% 99.9 14.7%
IC Packaging 33.5 33.4 -0.3% 30.4% 33.7 0.7%
Domestic pkg. 27.8 28.2 1.4% 34.0% 28.5 1.0%
IC Testing 12.9 12.3 -4.3% 49.2% 12.4 0.6%
Source: TSIA Q1 2004 Survey, TSIA project, IEK/ITRI
Note: p*-preliminary; e*-estimate

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