Integrated circuit testing, packaging to see decline: IEK

The China Post news staff

Taiwan’s semiconductor testing and packaging production value may reach NT$357.5 billion this year, a decline of 5.2 percent from 2010, predicted the Industrial Economics and Knowledge Center (IEK) under the Industrial Technology Research Institute. Globally, however, integrated circuit (IC) testing and packaging operators are expected to generate production value of US$24.1 billion, a 2.3-percent rise from last year, said Chen Ling-chun, analyst with IEK. The US$24.1 billion excludes production generated by independent device manufacturers’ own testing and packaging businesses.

Taiwan’s IC testing and packaging firms, meanwhile, account for 50 percent of the global production value. According to Chen, the loss in production value from Taiwan testing and packaging firms had to do with various negative factors, including clients’ inventory adjustments, a decline in orders, a reduction in DRAM capacity, and a depreciation of the U.S. dollar.

These factors will combine to cause a 5.2-percent decline in Taiwan’s IC testing and packaging production this year, she said. As for capacity utilization, it has been on the decline over the previous quarters and is expected to stand slightly above 80 percent in Q4, she said. The figure is expected to reach a bottom in Q1 2012 and come back up in Q2, she said.