Taiwan’s IC industry output declines in 1Q

June 13, 2005 – The overall output from Taiwan’s IC manufacturing industry totaled NT$235.8 billion (US$7.6 billion) in the first quarter of this year, the Taiwan Semiconductor Industry Association (TSIA) reported. The figure represents a decline of 3% from the production posted in the same quarter of last year and a decline of 16.4% from 4Q04, TSIA officials said.

In the IC industry, the design and manufacturing sectors posted first-quarter production of NT$57.5 billion and NT$127.7 billion, down by 4.8% and 6.7%, respectively, over that posted in 1Q04 and an even greater decline of 13.5% and 18.1%, respectively, compared with that posted in 4Q04.

Meanwhile, output from the packaging and testing sectors managed to secure growth of 8.1% and 17.9%, respectively, over that registered in 1Q04. The two figures, however, represented a decline of 15.5% and 14.7%, respectively, when compared with that posted in 4Q04, TSIA officials noted.

They attributed the production decline in the first quarter mainly to stagnant demand in the domestic and foreign markets due to excessive inventory accumulated from last year.


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