Taiwan’s semiconductor output to grow 20 per cent this year on chip-security concerns
- Already the world’s largest exporter of semiconductors, Taiwan accounts for more than 60 per cent of all global orders for computer chips
- Global fears of semiconductor scarcity heap pressure on Taiwan’s chip production to meet overseas orders, while fears of a military clash with mainland China weigh on the industry
Taiwan’s semiconductor output, already the world’s largest, will expand by 20 per cent this year on leftover coronavirus-era demand for consumer electronics and amid rising global concerns about the stability of supply chains for computer chips.
The output value will reach about NT$4.89 trillion (US$157.3 billion) in 2022, up about 20 per cent over 2021, according to Terry Tsao, president of industry association Semi Taiwan.
Taiwan provides more than 60 per cent of all semiconductors ordered around the world.
Semi Taiwan further forecast that Taiwan will be the world’s top buyer of semiconductor raw materials for a second straight year, expanding its share slightly to 23 per cent in 2022, up 0.1 per cent from 2021. Mainland China is tipped to be the No 2 buyer, at 19 per cent, up from 18.6 in 2021. And North America is expected to reach 6.4 per cent, up from 6 per cent last year.
Taiwan launched its technology sector in the 1980s and specialises in contract work for phones, PCs and servers. It has taken the lead in semiconductors over the years with its considerable experience, creating an industry that is much more mature than in most markets, according to Tony Phoo, a Taipei-based economist with Standard Chartered Bank.