Taiwan's Consumer-Use IC Makers See Rising Demand in Q2
May 13, 1999 (TAIPEI) -- Demand for ICs for consumer products has been increasing in the second quarter, boosting sales of Taiwan-based IC manufacturers such as Sunplus Technology Co., Ltd., Elan Microelectronics Corp. and Realtek Semiconductor Co., Ltd.
This has occurred against the backdrop of a weak market for dynamic random access memory (DRAM) microchips.
Some six-in. wafer plants, which are operating at full capacity, have even had to turn down orders.
And Sunplus Technology's microcontroller voice IC for the popular "Furby" toy continues to enjoy brisk demand.
Elan Microelectronics said it has witnessed strong demand for voice ICs and others since March, and factory schedules are full until June.
However, the two companies said that supplies of six-in. wafers have been tight since March, and deliveries are often delayed.
Local eight-in. wafer plants are able to accept more orders. But due to considerations of technology and cost, six-in. wafers are still the favorite of consumer-use IC makers here.
In Taiwan, only Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), United Microelectronics Corp. (UMC), and Mosel Vitelic Inc. offer six-in. wafer foundry services.
Most of the larger consumer IC makers here have either invested in wafer foundries or formed strategic alliances with foreign heavyweight companies, in an attempt to sustain their leadership in the market amid competition with the growing number of smaller rivals.
However, this has reduced the room for development of smaller IC-design companies. Sources in the consumer IC design sector said that several new design firms could be forced to shut down in the near future.
(Commercial Times, Taiwan)
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