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Digitimes Research: Taiwan IC backend production value to expand 5.9% in 2014

Nobunaga Chai, DIGITIMES Research, Taipei

The production value of Taiwan's IC testing and packaging industry is expected to grow 5.9% in 2014, higher than the 4.9% growth posted a year earlier, as well as the 4.2% growth projected for the global IC backend industry in 2014, according to Digitimes Research.

The production value generated by Taiwan's IC backend service companies reached US$14.01 billion in 2013 compared to NT$13.36 billion a year earlier, said Digitimes Research. In 2013, the global IC testing and packaging industry grew by 3.5%.

Efforts by Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) to ramp up their bumping, flip chip (FC), wafer-level package (WLP) and SiP packaging capacity have allowed them to cash in on the fast growth of the global smartphone and tablet markets, commented Digitimes Research.

With the global IC inventory having already dropped to an 8-quarter low of US$15.88 billion in the fourth quarter of 2013 and falling further in the first quarter of 2014, major chipset suppliers are likely to begin to replenish their inventories in the second quarter of 2014, which will fuel the growth of Taiwan's IC backend service companies.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.