IC production to decline in Q1 yet grow in 2013

According to ITIS, production of semiconductors, or integrated circuits (IC), totaled NT$415.1 billion in the fourth quarter of last year, a decline of 5.6 percent from the third quarter.

Contract manufacturers had production value of NT$206.3 billion, a decline of 7.9 percent quarter-on-quarter. IC design production reached NT$107.5 billion, declining 5.3 percent. IC packaging had NT$70 billion, dropping 1 percent. IC testing had NT$31.3 billion, declining by the smallest margin of 0.9 percent.

As for this year, Taiwan's overall IC production in the current quarter is expected to hit NT$392.6 billion, falling 5.4 percent quarter-on-quarter, on inventory adjustment efforts by clients during the slow season of the first quarter, ITIS said.

By sub-sector, IC design and contract manufacturing are expected to see production values of NT$101.6 billion and NT$201 billion, respectively, a decline of 5.5 percent and 2.6 percent quarter-on-quarter.

Yet according to ITIS, the industry will bottom out in the second and third quarters. For this year, total semiconductor production value is expected to hit NT$1.78 trillion, a rise of 9.3 percent from 2012. Each sub-sector is expected to see growth of over 9 percent, it said.

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