Semiconductor demand is strong, capital expenditure increases

Due to robust demand in the semiconductor market, coupled with continuous advances in wafer foundry processes, industry players have increased their capital expenditure. According to the Ministry of Economic Affairs, the import value of semiconductor production equipment last year was 13.44 billion US dollars, the second highest on record, with an annual increase of 14.6%.

Looking at the first 10 months of the 102nd year (2013), the domestic production value of semiconductor testing equipment and parts, and of semiconductor production equipment and parts, was 11.3 billion New Taiwan dollars and 9.2 billion New Taiwan dollars respectively, both showing double-digit annual growth rates of 31.8% and 16.8%.

On the other hand, benefiting from increased demand for mobile communication devices and consumer electronics, which drove brisk orders for the domestic semiconductor industry, the Ministry of Economic Affairs stated that in the first 10 months of the 102nd year (2013), the total production value of the semiconductor manufacturing industry reached 1.1413 trillion New Taiwan dollars, an annual increase of 11%.

Among these, the integrated circuit manufacturing industry performed best, with a production value of 743.8 billion New Taiwan dollars and an annual growth rate of 16%.

According to export trade statistics from the Customs Administration of the Ministry of Finance, in the 102nd year (2013), Taiwan's integrated circuit export value was 56.17 billion US dollars, a record high, with an annual increase of 6.2%. The main destinations were Hong Kong, China, mainland China, Singapore, South Korea, and Japan, among others, with exports to Hong Kong, China accounting for 30.5%, ranking first; mainland China at 19.8% ranking second; and Singapore at 19% ranking third.

Looking further at changes in the share of integrated circuit exports over the past 5 years, the Ministry of Economic Affairs analyzed that the share of exports to Singapore showed a year-by-year upward trend from the 98th year (2009) to the 101st year (2012) of the Republic of China, but in the 102nd year (2013) the share was 19%, slightly down from 20.7% in the 101st year (2012).

As for integrated circuit exports to Japan, the Ministry of Economic Affairs stated that the export share over the past 5 years has shown a year-by-year decline. In the 98th year (2009) of the Republic of China, the share once reached 13.2%, but in the 102nd year (2013) it fell to only 6.2%. Officials speculated that this may be related to the performance of Japan's semiconductor industry in recent years being not as good as in the past, thereby affecting demand.