Taiwan's semiconductor revenue crossed NT$1 trillion in 2004

Taipei, Jan. 25, 2005 (CENS)--Taiwan's semiconductor industry raked in total revenues of NT$1.24 trillion (US$35.6 billion at US$1:NT$32) last year, crossing the NT$1 trillion (US$31 billion) mark for the first time, according to a government-backed research institute.

Industrial Economics and Knowledge Center (IEK) of the government-backed Industrial Technology Research Institute (ITRI) released the study yesterday in Taipei. The center forecast the Taiwan industry to rise 14.8% throughout this year, far higher than global average of 1.2% projected by many market-research organizations.

IEK's research fellows pointed out that the Taiwan's 2004 revenue was 36.1% up from its 2003 level.

By industrial segments, Taiwan's chip design, chip manufacturing, chip packaging and chip test posted a 36.7%, 35.6%, 35.6% and 40.4% increases, respectively, last year over 2003. This year, its chip-design sector is forecast to rise 16.2%, to NT$302 billion (US$9.4 billion); its chip-manufacturing segment is projected to gain 14.9%, to NT$732.2 billion (US$22.8 billion); its wafer-foundry sector is forecast to grow 15%, to NT$463.1 billion (US$14.4 billion); its chip-packaging line is expected to surge 11.7%, to NT$178.1 billion (US$5.5 billion) and its chip-test industry is forecast to grow 16.6%, to NT$67 billion (US$2.1 billion).

Market-research organization World Semiconductor Trade Statistics, Inc. (WSTS) of the United States forecast semiconductor industry to inch up only 1.2% as a whole throughout this year, to US$215.3 billion. IEK ascribed the low growth mostly to an anticipated slowdown of world economy as a result of high oil prices, U.S. dollar devaluation, globally surging interests and some unstable geopolitical events.

However, IEK estimated Taiwan's semiconductor industry to post a staggering growth this year, with its world's No. 1 foundry segment and world's No. 2 fabless sector leading the way.