Taiwan Semiconductor Industry Expected to Grow 1.7% to Over USD600B in 2023 Despite Slow Demand and Inventory Pileup
The shipment value of the Taiwanese semiconductor industry reached US$35.503 billion in the third quarter of 2021, up by 10.3% sequentially and 33.0% year on year. The industry’s shipment value is estimated to have reached US$130.8 billion in 2021, up 31.8% year-on-year.
This report discusses the key issues in major subsectors of the Taiwanese semiconductor industry including IC design, manufacturing, and packaging and testing, also known as OSAT (Outsourced Semiconductor Assembly and Test); looks into the industry's development in the third quarter of 2021 to forecast its development in the fourth quarter of 2021 and onwards.
List of Topics
- Development and key issues in the Taiwanese semiconductor industry, comprising of IC design, semiconductor manufacturing, and packaging and testing (also known as OSAT, Outsourced Semiconductor Assembly and Test)
- Outlook for the industry, comprising of IC design, semiconductor manufacturing, and packaging and testing (also known as OSAT, Outsourced Semiconductor Assembly and Test)
Owing to oversupply concerns, global inflation, and the ongoing Ukraine-Russia war, the global semiconductor industry's growth momentum in 2021 has continued into 2022, albeit at a slower rate. The analyst estimated global semiconductor market value will reach USD 605.6 billion in 2022, up 8.9% year-on-year.
Taiwan Semiconductor Shipment Value, 2015-2023
"Some market unfavorable factors that affect the consumer market demand and pull-in demand are likely to have their toll on the global semiconductor market performance. Hence, global semiconductor market value is anticipated to reach USD 608.6 billion in 2023, up merely 0.5% year-on-year," said Cynthia Yang, senior industry analyst at the 35th Forum. Over the years, Taiwan has played a prominent role in the global semiconductor market by being a major chip supplier of global value chains.
Hence, the shipment value of the Taiwanese semiconductor industry is estimated to top around NTD 4.30 trillion (USD127.8 billion) in 2022 and grow at 15.8% year-on-year, much higher than the global average. Due to the slowdown in global consumer electronic market demand, the industry is forecast to reach NTD 4.37 trillion (USD140 billion) in 2023, up 1.7% year-on-year.
Table of Contents
1. Key Issues1.1 IC Design
1.1.1 Rosy Outlook for Notebook PC Market on Seasonal Demand for Commercial Models and Slowdown in Global Outbreak
1.1.2 Network Communication Chips in Shortest Supply with Lead Times up to 1 Year; RF IC Suppliers Experience Declining Profits
1.2 Semiconductor Manufacturing
1.2.1 TSMCs Price Hikes Caught World's Attention
1.2.2 Niche-market Applications Drive Memory Vendors’ Revenues
1.3 OSAT (Outsourced Semiconductor Assembly & Test)
1.3.1 COVID-19 Outbreaks in Southeast Asia Hit the OSAT Industry Hard
1.3.2 Peak Season Effect Drives Revenue Growth, Yet Some Vendors’ Revenues Yet to Meet Expectations
2. Industry Outlook
2.1 IC Design
2.1.1 Driver IC Suppliers’ Shipments to Rise Slightly as Large-size TV Panel Demand Likely to Recover from Rock Bottom
2.1.2 Forecast for Off-season Demand Revised Downward amid Supply Shortages and Tight Production Capacity but to Slowly Recover in 1Q22
2.2 Semiconductor Manufacturing
2.2.1 Wafer Foundries Aggressively Expand Production Capacity with 28nm Becoming Increasingly Important
2.3 OSAT
2.3.1 Declining End Market Demand and Inventory Adjustment to Affect Revenue Growth
2.3.2 China's Dual Control of Energy Policy Likely to Affect Semiconductor Supply Chains
Appendix
List of Companies
Samples
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Companies Mentioned
A selection of companies mentioned in this report includes:
- AMD
- Anpec Electronics
- Apple
- ASE Group
- Broadcom
- ChipMOS
- ELAN
- Fitipower Integrated Technology
- Global Mixed-mode Technology
- Infineon
- Intel
- Kinsus
- KYEC
- Macronix
- MediaTek
- Nanya PCB
- Nanya Technology
- Novatek Microelectronics
- Nvidia
- NXP
- Powerchip
- Powertech
- Qualcomm
- Raydium
- Realtek
- Ricktek
- SMIC
- Sony
- Toyota
- UMC
- Unimicron
- VIS
- Winbond
- ZillTek Technology
Methodology
Primary research with a holistic, cross-domain approach
The exhaustive primary research methods are central to the value that the analyst delivers. A combination of questionnaires and on-site visits to the major manufacturers provides a first view of the latest data and trends. Information is subsequently validated by interviews with the manufacturers' suppliers and customers, covering a holistic industry value chain. This process is backed up by a cross-domain team-based approach, creating an interlaced network across numerous interrelated components and system-level devices to ensure statistical integrity and provide in-depth insight.
Complementing primary research is a running database and secondary research of industry and market information. Dedicated research into the macro-environmental trends shaping the ICT industry also allows the analyst to forecast future development trends and generate foresight perspectives. With more than 20 years of experience and endeavors in research, the methods and methodologies include:
Method
- Component supplier interviews
- System supplier interviews
- User interviews
- Channel interviews
- IPO interviews
- Focus groups
- Consumer surveys
- Production databases
- Financial data
- Custom databases
Methodology
- Technology forecasting and assessment
- Product assessment and selection
- Product life cycles
- Added value analysis
- Market trends
- Scenario analysis
- Competitor analysis
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