Taiwan Semiconductor Industry Expects Over 15% Growth in Shipment Value for 2024
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.
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Table of Contents
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
Executive Summary
After experiencing subdued demand in the consumer market throughout 2022, Taiwan's IC design and packaging/testing sectors, also known as OSAT (Outsource Semiconductor Assembly and Testing), demonstrated lackluster performance in the latter half of 2022. The memory industry, in particular, faced a severe downturn. However, buoyed by robust growth in the wafer foundry sector, the Taiwanese industry's shipment value still surpassed NT$4 trillion (US$125.8 billion; US$1= NT$31.8), outperforming the global average.
Taiwan Semiconductor Industry Shipment Value by Sector, 2015-2024
As the semiconductor industry enters a phase of inventory adjustment in 2023, IC design and memory sectors, primarily focused on consumer end-applications, are grappling with a situation of declining demand and oversupply. This ripple effect extends to the wafer foundry and OSAT industries. Nevertheless, the analyst anticipates that the industry will enjoy a 15.7% growth in 2024 compared to 2023, with the memory and IDM (Integrated Device Manufacturing) industry sector experiencing the highest growth rate of 20%, followed by the foundry's 15%.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 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
- 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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