Despite the declining demand for semiconductor products in the consumer electronics and computer sectors, experts expect continued double-digit growth for the Taiwanese semiconductor industry. This is reported by the Digitimes portal.
The Taiwan Semiconductor Industry Association (TSIA) cites calculations by the Industrial Technology Research Institute (ITRI) that the volume of products manufactured by Taiwan’s semiconductor industry amounted to US$41.8 billion in the second quarter of 2022, an increase of 6, 7% over the same quarter last year and 25.4% more than the same period last year.
The ITRI forecast for the island’s semiconductor industry expects the island’s total industry to generate full-year revenue of $165.1 billion, up 19.7% from 2021.
As shipments of finished products such as smartphones, laptops, desktops, tablets and other products declined in the first quarter of 2022, developers and manufacturers may need to reconsider their business plans. However, Digitimes Research predicts that demand for automotive, industrial and networking chips will continue to grow, with contract manufacturers optimizing orders to ensure 100 percent capacity utilization.
According to a Digitimes Research spokesperson, the full year will be favorable for Taiwan’s semiconductor industry as long-term agreements and strong demand from automakers drive contract manufacturing growth.
With sales expected to be higher than expected for Taiwanese contract manufacturers in the first half of 2022, long-term contracts and upfront payments will drive further sales growth. Digitimes Research expects Taiwan’s top four contract manufacturers to reach combined sales of $88 billion in 2022, up 30% year-on-year, a forecast that differs slightly from the ITRI figures shown in the table. Industry data differs.