Recap and Outlook for the Taiwanese Semiconductor Industry, 1Q 2024
The Taiwanese semiconductor industry, encompassing IC design, IC manufacturing, and packaging and testing (also known as OSAT, Outsourced Semiconductor Assembly and Test), generated shipment value of US$33.447 billion in the fourth quarter of 2023, up 8.2% sequentially but down 1.5% year-over-year. In 2024, the growth of the IC design manufacturers will depend highly on the growth of flagship smartphones, including AI phones. Meanwhile, memory market prices have been on the rise since the first quarter of 2024, expecting to memory shipments and revenue growth for manufacturers as end-market demand gradually improves. Furthermore, the ongoing evolution of advanced packaging presents opportunities for both foundries and OSAT companies. This report examines key development issues across three major Taiwanese semiconductor sectors during the fourth quarter of 2023 and the first quarter of 2024, while also exploring major development trends expected throughout 2024.
1. ANALYSIS OF KEY ISSUES
1.1 IC Design
1.1.1 IC Design Industry Rebounds from High Inventory Shadow but Seasonal Cycle Yet to Fully Recover
1.1.2 Smartphone Supply Chain Replenishment Boosts Small Display Driver ICs; AMOLED Prices Competitive
1.2 IC Manufacturing
1.2.1 Advanced Process Technology Drives Over 60% Revenue; 8” Wafer Capacity Utilization Keeps Declining
1.2.2 Mainstream Memory Market Shows Signs of Recovery; Niche DRAM Demand Rises
1.3 IC Packaging and Testing
1.3.1 IC Packaging and Testing Industry Remains Cautious Despite Suring Short and Urgent Orders for PC and Smartphone Chips
1.3.2 Memory Inventory Clearance Nearing Completion, Driving Growth in Memory Packaging and Testing
2. INDUSTRY OUTLOOK
2.1 IC Design
2.1.1 Smartphone Supply Chain Replenishment Momentum Persists, Yet Recovery in Inventory Rebuilding Remains Uncertain
2.1.2 IC Design Companies to Continuously Benefit from Expansion of AI Applications and Trend of ASIC Outsourcing
2.2 IC Manufacturing
2.2.1 First-Quarter Revenue Outlook for Semiconductor Wafer Foundries Conservative as 2024 Market Demand Slowly Recovers
2.2.2 Memory Market Warming Up, Operations Expected to Improve Quarterly
2.3 IC Packaging and Testing
2.3.1 Rising Demand for Emerging Applications Drives Major OSAT Companies to Increase Production Capacity and CapEx
2.3.2 Advanced Packaging Gaining Importance, Leading OSAT Companies to Invest More in Advanced Packaging Technology and Capacity
Appendix
List of Companies
1.1 IC Design
1.1.1 IC Design Industry Rebounds from High Inventory Shadow but Seasonal Cycle Yet to Fully Recover
1.1.2 Smartphone Supply Chain Replenishment Boosts Small Display Driver ICs; AMOLED Prices Competitive
1.2 IC Manufacturing
1.2.1 Advanced Process Technology Drives Over 60% Revenue; 8” Wafer Capacity Utilization Keeps Declining
1.2.2 Mainstream Memory Market Shows Signs of Recovery; Niche DRAM Demand Rises
1.3 IC Packaging and Testing
1.3.1 IC Packaging and Testing Industry Remains Cautious Despite Suring Short and Urgent Orders for PC and Smartphone Chips
1.3.2 Memory Inventory Clearance Nearing Completion, Driving Growth in Memory Packaging and Testing
2. INDUSTRY OUTLOOK
2.1 IC Design
2.1.1 Smartphone Supply Chain Replenishment Momentum Persists, Yet Recovery in Inventory Rebuilding Remains Uncertain
2.1.2 IC Design Companies to Continuously Benefit from Expansion of AI Applications and Trend of ASIC Outsourcing
2.2 IC Manufacturing
2.2.1 First-Quarter Revenue Outlook for Semiconductor Wafer Foundries Conservative as 2024 Market Demand Slowly Recovers
2.2.2 Memory Market Warming Up, Operations Expected to Improve Quarterly
2.3 IC Packaging and Testing
2.3.1 Rising Demand for Emerging Applications Drives Major OSAT Companies to Increase Production Capacity and CapEx
2.3.2 Advanced Packaging Gaining Importance, Leading OSAT Companies to Invest More in Advanced Packaging Technology and Capacity
Appendix
List of Companies
