The global semiconductor industry will remain promising in the second and third quarters of 2014, according to Morris Chang, chairman of Taiwan Semiconductor Manufacturing Company (TSMC).
The production value of Taiwan’s semiconductor industry is expected to reach NT$2 trillion (US$65.46 billion) in 2014, buoyed in part by TSMC’s leading market position in the 28nm process and the commencement of the 20nm process, Chang said on the sidelines of the annual meeting of the Taiwan Semiconductor Industry Association (TSIA).
The mobile device market, led by smartphones, will continue to prosper in the next two years, serving as the growth engine of the semiconductor industry, Chang commented.
Internet of Things (IoT) will be the next big thing after smartphones to drive revenue growth in the semiconductor industry, Chang noted.
However, the semiconductor industry will not be the biggest beneficiaries in the IoT era, but will play an important role as the basic supplier in the IoT ecosystem, Chang added.
While the global semiconductor industry was growing at a rate of 3-5% over the past 2-3 years, some companies such as Qualcomm, MediaTek and TSMC have seen their revenues expand by nearly 20% annually during the same period as these firms have been able to keep up with the development of the mobile device industry, Chang asserted.
On average, each smartphone sold worldwide contributes US$8 to TSMC’s revenues, and much higher to Qualcomm’s, Chang noted.
In addition to foundry houses, the advancement of SiP packaging technology, MEMS sensors and low-power consumption chips will be essential to the development of the IoT ecosystem, Chang commented.
