Research analysis
Digitimes Research: Taiwan IC design industry output value to decline 1.8% in 4Q15
Nobunaga Chai, DIGITIMES Research, Taipei
Tuesday 8 December 2015

The production value of Taiwan's IC design industry is expected to drop 1.8% sequentially in the fourth quarter of 2015, due mainly to seasonal factors, according to Digitimes Research.

Meanwhile, end-market demand particularly for smartphones has been weaker-than-expected in the fourth quarter, said Digitimes Research. Unfavorable market conditions are prompting device makers to continue adjusting their inventories, Digitimes Research indicated.

Combined revenues of Taiwan-based IC design houses are forecast to reach NT$136.09 billion (US$4.15 billion) in the fourth quarter, down about 2% from the same period in 2014, Digitimes Research said.

In all of 2015, the production value of Taiwan's IC design industry will total NT$522.2 billion, representing a 3.7% decrease from 2014 levels, Digitimes Research said.

Looking forward, Taiwan's IC design industry will resume growth in 2016, Digitimes Research noted. Meanwhile, ASPs for LCD driver ICs are expected to improve as TVs and high-end smartphones will feature higher resolution displays.

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