Taiwan's Chip Industry Contracts 24 Pct. in Q2
October 2, 2001 (TAIPEI) -- A study issued recently by the Taiwan Semiconductor Industry Association shows Taiwan's chip industry reported a production value of NT$122.5 billion in the second quarter, down 24.2 percent from the comparable period in 2000.
The association, a corporate body representing most of Taiwan's chip companies, noted that the recession reflected the weak economy.
TSIA said most of Taiwan's chip companies suffered a decline in the second quarter, except some chip designers which rolled out niche products.
In the second quarter, Taiwan's chip-design sector was valued at NT$27.6 billion, inching up 1.8 percent from the second quarter of last year, although declining 8.3 percent from the first quarter of this year. (NT$34.51 = US$1)
Taiwan's chip-making sector in the second quarter, the association's study shows, contracted 32.2 percent from the same period last year and 27 percent from the first quarter of this year, with a value of NT$72.4 billion. The association attributes the recession to integrated device manufacturers retreating contracts from Taiwan's dedicated foundry providers and the slipping DRAM prices.
TSIA's study shows that Taiwan's IC packaging providers had depended on domestic manufacturers for 50 percent of orders, and its IC testers had counted on domestic manufacturers for 60 percent of contracts. However, the economic slowdown has brought down the contract amount. Also, collapsing DRAM prices have prompted the memory makers to reduce outsourcing testing and packaging services in order to save spending.
The study estimates that Taiwan's home-grown IC packaging providers generated a total value of NT$16.4 billion in the second quarter, down 18.8 percent from the same period of last year, and its home-grown IC testing providers reported production value of NT$6.1 billion, down 16.4 percent from last year.
The association said that it was rare to see Taiwan's chip industry suffer in this way, and expected the industry to pick up in the fourth quarter.
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(Commercial Times, Taiwan) |
