Development Highlights of Taiwan's Semiconductor Industry, 2Q 2023

The overall shipment value of Taiwan's semiconductor industry in the first quarter of 2023 reached US$29.3 billion, representing a decline of 13.7% compared to 4Q 2022 and a decline of 22.4% compared to 1Q 2022.

This report aims to analyze key development trends and issues in the IC design, semiconductor manufacturing, and packaging and testing industry sectors in the first quarter of 2023, as well as the development highlights of Taiwan's semiconductor industry as a whole; examines the development of the semiconductor industry in the second quarter of 2023 and beyond.

This product will be delivered within 3-5 business days.

1.Key Development Highlights
1.1 IC Design
1.1.1 Challenges in Semiconductor Sales Performance Under Inventory Pressure
1.1.2 Rebound in IC Design Industry is Expected
1.2 Semiconductor Manufacturing
1.2.1 Significant Drop in Wafer Fab Utilization Rate due to Chip Inventory Clearance
1.2.2 Memory Pricing and Volume Continued to Probe Bottom
1.3 IC Packaging and Testing
1.3.1 Smooth Inventory Clearance of Display Driver ICs Indicates Gradual Recovery in Demand
1.3.2 Subsequent Momentum Depends on Demand Replenishment Following Bottoming Out in 1Q

2.Outlook for the Industry
2.1 IC Design
2.1.1 Uncertainty Persists in Global Economic Recovery Pace Remains Despite Ongoing Inventory Clearance
2.1.2 Advancements in AI Computing Applications Drive Demand for Server Computing and Peripheral Chips
2.2 Semiconductor Manufacturing
2.2.1 Leading Foundries Experience Bottoming Out in 2Q, Anticipating Sequential Recovery
2.2.2 Further Decline in Server and SSD Demand to Increase Uncertainties for Memory Suppliers to Regain Momentum
2.3 IC Packaging and Testing
2.3.1 Leading Memory Suppliers Continue to Accelerate Inventory Clearance in 2H 2023
2.3.2 Emerging Trends in AI and HPC Applications Drive Development of Advanced Packaging Technologies

Appendix

List of Companies

Companies Mentioned

A selection of companies mentioned in this report includes:

Alchip Technologies
Amazon
Anpec Electronics
ASE
ASMedia Technology
Chipbond Technology
ChipMOS
ELAN Microelectronics
ESMT
Fitipower
FocalTech
Generalplus Technology
GMT
GUC
Himax
Holtek Semiconductor
JD
King Yuan Electronics
Kioxia
Macronix
Micron Technology
Nanya Technology
Novatek
Nuvoton Technology
Open AI
Phison Electronics
Powerchip Semiconductor
Powertech
Raydium Semiconductor
Realtek Semiconductor
Samsung
Silicon Motion
SK Hynix
Sonix Technolog
TSMC
UMC
VIS
Winbond Electronics

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