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High-end processes to make up 40% of Taiwan's contract chip sales

Staff writer ▼ | September 28, 2015
High-end technology processes are expected to account for about 40% of Taiwan's contract chip manufacturing industry in 2015, staying little changed from the ratio seen a year earlier.
Chips factory
Technology in Asia   According to the Market Intelligence Center
This is according to the Market Intelligence Center under the government-sponsored Institute for Information Industry (MIC).

The MIC said that production output of the local contract chip production industry is expected to rise almost 9% year-on-year this year, while with heavyweights such as Taiwan Semiconductor Manufacturing Co (TSMC) and United Microelectronics Corp (UMC) gearing up to develop advanced processes, high-end technology still accounts for 40% of the total sales this year.

The MIC said that demand for advanced processes has been on the rise on the back of the popularity of smartphones and other mobile devices, which has prompted TSMC and UMC to devote more efforts in research and development.

In addition, the booming Internet of Things (IoT) market is giving an additional boost to high-end technology processes in the contract chip manufacturing sector. The IoT refers to devices of all types, such as security monitors, vacuum cleaners and mobile phones, connected to the Internet and to each other to create a more interconnected user experience.

As a result, the MIC said, led by TSMC's and UMC's efforts, high-end processes are expected to weigh a lot in Taiwan's contract chip production. TSMC is the largest contract chip maker in Taiwan and the world, while UMC ranks as the second largest in Taiwan.