The decline in demand for semiconductor products in the current year can be seen in the reports from many companies in the industry, but the unfavorable development is also confirmed in the official statistics from the authorities. For example, November was the first period in 42 months in which earnings growth stopped for Taiwanese semiconductor exporters.
Image source: TSMC
Chip exports are an important source of revenue for Taiwan, as the local company TSMC controls about half of the global semiconductor contract manufacturing services market and the island’s share of the world stage in the advanced lithography segment is over 90%. In November acc DigiTimes Referring to official statistics, Taiwanese companies’ semiconductor component export earnings fell 23.4% sequentially to US$50.1 billion. The pandemic stimulated the growth of chip production, but events in the global economy over the past year forced an end to this trend.
Taiwan’s overall export earnings have been falling for three straight months, so the situation in the semiconductor sector is not unique. Revenue in November fell 19% year over year to a 19-month low. In general, in the 11 months of this year, Taiwanese companies managed to earn US$443.78 billion from exporting products, which is 9.4% more than the same period last year. Apparently, the previous summer months still gave cause for optimism and boosted Taiwan’s export earnings.
Taiwan is not alone in its problems in the semiconductor market, as South Korea is also suffering from the recent trends in the global economy. In November, local chip suppliers’ export earnings fell 30% year-on-year, and overall earnings fell for the second straight month.
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