Taipei – Taiwan’s semiconductor industry is forecast to grow 12 percent in 2014, well ahead of world expansion, according to a May 29 report by Market Intelligence and Consulting Institute.

The global semiconductor industry will grow 5.3 percent year on year to US$322 billion in 2014, driven by downstream growth in smartphones and the emerging wearable device market, according to Taipei-headquartered MIC, a division of the ROC government-funded Institute for Information Industry.

According to MIC consultant Chris Hung, as the PC sector weakens and mid-range smartphones continue to drive the global market, Taiwan’s semiconductor production is forecast to jump to NT$2.02 trillion (US$67 billion), with integrated circuit design and manufacture both showing double digit growth versus the previous year.

IC design is predicted to grow 10 percent year on year to NT$513.4 billion, Hung said.

Taiwan IC contract manufacturers will benefit from mobile device demand, with continued growth in the under-28 nanometer sector. Tablet devices and fingerprint recognition will drive mature manufacturing demand, with major makers operating at full capacity.

Output will continue rising in the second and third quarters, Hung predicted. In the fourth quarter, a slackening due to seasonal demand will not be pronounced because of rapid expansion in the 20nm sector. Overall, IC manufacturing is expected expand to NT$1.12 trillion in 2014, up 15 percent on the previous year.

The nation’s IC packaging and testing industry will also profit from increased demand for ICT chips and consumer electronics. MIC forecasts output to grow 6.5 percent year on year to NT$390.6 billion in 2014. Source: Taiwan Today