Taiwan semiconductor output overtakes United States

Peng Kuo-chu said that since 2000, chipmakers and the IC industry have played the main roles in the capacity expansion of Taiwan’s semiconductor industry, adding that Taiwan and South Korea have the greatest number of 12 inch wafer plants and that their production capacities have increased most rapidly in the world.

Peng predicted that in the fourth quarter, the production capacity of Taiwan’s 12 inch wafer fabs will reach 590,000 units, a 6 percent increase over the previous quarter. He forecast that in two years, five such fabs will each post a quarterly growth rate of more than 10 percent.

Although Japan’s semiconductor industry will maintain its top position in terms of production capacity worldwide, its production value is forecast to drop to only 24 percent of the total this year, according to Peng.

The production capacity of South Korea’s semiconductor industry is forecast at 17 percent of the global total, the same level as the United States, with which it will share third place in the world.

With the aggressive capacity expansion in Taiwan, South Korea, Singapore and China, the ratio of the output of Asia’s semiconductor industry is expected to reach 47 percent of the global total, Peng added.

Taiwan has been for decades known as an international semiconductor powerhouse. It is home to Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp., the world’s largest and second largest made-to-order chipmakers, respectively, as well as famous IC design houses, DRAM chipmakers and IC testing and packaging firms.

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