Taipei, Aug. 19, 2008 (CENS)--Taiwan`s semiconductor industry will likely see its revenue for the third quarter surge 14.3% from the second quarter to NT$411 billion (US$13 billion at US$1:NT$31), according to estimates by Industrial Economics and Knowledge Center (IEK), a Taiwan government-backed think tank.

The organization ascribed the hefty growth mostly to increased outsourcing contracts from integrated device manufacturers, normal demand rise in the Christmas shopping season, and waning fallout from the sub-prime mortgage credit crunch.

Compared with Taiwan`s semiconductor industry, global semiconductor industry will likely grow only half the Taiwan`s rate, at 7.3%, according to IEK.

The center estimated Taiwan`s chip-making industry to generate revenue of up to NT$1.5 trillion (US$49 billion) throughout this year, up 4.8% year on year. Of the entire industry, design, manufacturing, packaging and testing segments have increased quarter by quarter so far this year.

Taiwan`s IC design segment saw revenue increase only 5.3% in the second quarter from a quarter earlier as a result of continuously slumping U.S. consumer confidence triggered by the home loan credit crisis and lingering appreciation pressure on the NT dollar value against the U.S. dollar. The second quarter is normally a peak season for consumer electronics of a year.

In the second quarter, Taiwan`s chip industry, which is made up of design, manufacturing, packaging and testing segments, generated total revenue of NT$359.6 billion (US$11 billion), rising 4.9% from a quarter earlier and 4.6% year on year. Design segment scored revenue of NT$96.5 billion (US$3.1 billion), manufacturing segment NT$178.4 billion (US$5.7 billion), packaging segment NT$59 billion (US$1.9 billion) and testing segment NT$25.7 billion (US$829 million).

Throughout last quarter, global sales of semiconductors reached US$64.7 billion, growing 3% from a quarter earlier and 8% from the same period of last year. By shipment volume, 146.9 billion chips were sold worldwide in the second quarter alone, gaining 2.7% quarter on quarter and 2.6% year on year.

(by Ken Liu)