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Think tank advises firms on meeting challenges posed by Chinese IC industry

Source: Taiwantrade | Updated: 20 November 2015

Taiwan-based think tank Industrial Economics and Knowledge Center (IEK) recently released a report advising ways for Taiwan's IC firms to meet the challenges brought forth by China's rising IC industry.

According to IEK Manager Mao-Jung Peng, as the market share of China’s semiconductor industry is growing rapidly, it would be in the interest of Taiwan's IC firms to step up their strategic business alliances, technology development, and supply chain integration.

“Taiwan’s IC design houses can form stronger strategic business alliances instead of working alone,” advised Peng.

In terms of IC fabrication, Peng said that technology development is the key and it is of great importance that Taiwanese firms continue to invest in future fabrication processes such as the 7 nanometer and 5 nanometer nodes.

At the same time, furthering the supply chain integration in Taiwan's IC industry and creating closer cooperation between the IC packaging and testing firms would greatly enhance the industry's overall competitiveness, Peng suggested.

According to IEK, Taiwan is currently the world's top IC packaging and testing service providers with 51.8 percent of the market share. However, China has been very active in expanding its market share through mergers and acquisitions.

Peng has forecast that the global semiconductor industry market will grow 1.9 percent in 2016, spurred by strong demands for mobile devices, SSD, automobile electronics, ultrathin laptops, industrial applications, and wearables.

Source: CTIMES
Grace TH Hsu (h860@taitra.org.tw)


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