Recap and Outlook for the Taiwanese Semiconductor Industry, 3Q 2021

Shipment value of the Taiwanese semiconductor industry reached US$32.198 billion in the second quarter of 2021, up by 11.4% sequentially and 40.5% year on year. This report looks into the key issues in major subsectors of the Taiwanese semiconductor industry, including IC design, manufacturing, and OSAT (Outsourced Semiconductor Assembly and Test); provides an overview of the development of the industry in the second quarter of 2021 to forecast its development in the third quarter of 2021 and onwards.

Table of Contents

1.Key Issues

1.1 IC Design

1.1.1 Robust Demand for Mobile Computing Chips Continues, Leading to Strong Growth for Taiwans IC Design Industry, Led by MediaTek and Realtek

1.1.2 Driver IC Vendors Contribute Significantly to Shipment Value of Taiwans IC Industry Thanks to Brisk Market Demand and Price Hikes

1.2 IC Fabrication

1.2.1 Wafer Foundries Plan Capacity Expansion Aggressively, Especially for Mature 28nm Node

1.2.2 Soaring Memory Demand Worldwide Drives Sustainable Revenue Growth

1.3 OSAT

1.3.1 End Market Demand Pushes OSAT Companies to Full Capacity

1.3.2 OSAT Companies Suffer Short-term Impact from COVID-19 but Annual Revenue Unlikely to be Affected

2.Industry Outlook

2.1 IC Design

2.1.1 Production Lines Fully Booked till Late 2021 due to Increased 5G Phone Penetration, Network Communications Device Specs, and Replacement Demand

2.1.2 DDI Price Quotes to Rise Again in 3Q before Going Down

2.2. IC Fabrication

2.2.1 Wafer Foundries Price Hikes to Affect Chip Supply Ecosystem

2.3 OSAT

2.3.1 OSAT Companies to Enjoy Ongoing Revenue Growth in 2H due to the Peak Season

2.3.2 COVID-19 Outbreak in Southeast Asia Enables Taiwanese Suppliers to Strengthen Ties with IDMs

Appendix

List of Topics

Development and key issues of three major subsectors of the Taiwanese semiconductor industry, including IC design, semiconductor manufacturing, and IC packaging and testing, also known as OSAT (Outsourced Semiconductor Assembly and Test)

Industry outlook for three major semiconductor subsectors, touching on key players deployment strategies and key development trends

1.Key Issues

1.1 IC Design

1.1.1 Robust Demand for Mobile Computing Chips Continues, Leading to Strong Growth for Taiwans IC Design Industry, Led by MediaTek and Realtek

1.1.2 Driver IC Vendors Contribute Significantly to Shipment Value of Taiwans IC Industry Thanks to Brisk Market Demand and Price Hikes

1.2 IC Fabrication

1.2.1 Wafer Foundries Plan Capacity Expansion Aggressively, Especially for Mature 28nm Node

1.2.2 Soaring Memory Demand Worldwide Drives Sustainable Revenue Growth

1.3 OSAT

1.3.1 End Market Demand Pushes OSAT Companies to Full Capacity

1.3.2 OSAT Companies Suffer Short-term Impact from COVID-19 but Annual Revenue Unlikely to be Affected

2.Industry Outlook

2.1 IC Design

2.1.1 Production Lines Fully Booked till Late 2021 due to Increased 5G Phone Penetration, Network Communications Device Specs, and Replacement Demand

2.1.2 DDI Price Quotes to Rise Again in 3Q before Going Down

2.2. IC Fabrication

2.2.1 Wafer Foundries Price Hikes to Affect Chip Supply Ecosystem

2.3 OSAT

2.3.1 OSAT Companies to Enjoy Ongoing Revenue Growth in 2H due to the Peak Season

2.3.2 COVID-19 Outbreak in Southeast Asia Enables Taiwanese Suppliers to Strengthen Ties with IDMs

Appendix

List of Companies

List of Topics

Development and key issues of three major subsectors of the Taiwanese semiconductor industry, including IC design, semiconductor manufacturing, and IC packaging and testing, also known as OSAT (Outsourced Semiconductor Assembly and Test)

Industry outlook for three major semiconductor subsectors, touching on key players deployment strategies and key development trends