The industrial production index in Taiwan increased 18.37% in June 2021, compared with the same month in 2020. The annual production index by some major industrial divisions is as follows: manufacturing increased 20.20%, mining & quarrying decreased 5.11%, electricity & gas supply decreased 0.29%; water supply decreased 4.39%, according to the Ministry of Economic Affairs (MOEA).
Demand from the car sector has been strong, and foundry houses are stepping up efforts to rolling out more automotive chips. Apple's manufacturing partners are seeing COVID-induced disruptions to their production in Vietnam, and will have to move poduction of new-gen AirPods to China. And in China, construction of 5G base stations is slowing down this year.
Taiwan's leading leadframe maker Chang Wah Technology (CWTC) is set to enjoy five golden years duing which supply will continue to fall short of demand, according to company chairman Canon Huang.
Taiwan-based Leatec Fine Ceramic, a dedicated maker of aluminum and ceramic substrates needed for manufacturing chip resistors, has expressed optimism about its operations in the third quarter of 2021.
ABF substrate supply is likely to remain short of demand through 2023 although makers in Taiwan, Japan and South Korea have all geared up capacity expansions at the request of chipmaking clients, according to industry sources.
Chip shortage gas been serious, but Apple and carmakers are both asking for more ICs, the former looking to secure supply for its upcoming devices and the latter to prevent dirsuptions to their productions. Chinese IC designers are seeking more advanced manufacturing support from TSMC for their AI and HPC chips. Taiwan-based server makers are keen on expanding production capacity to meet strong demand.
HiSilicon is gearing up in-house development of OLED display driver chips (DDI), but has encountered difficulty in gaining sufficient support from foundries and OSATs capable of providing 40/28nm process manufacturing and high-end testing services, according to industry sources.
In light of the global semiconductor demand surges and chip companies looking to avoid the risks from the trade war and supply chain storage, the India government has recently provided new incentives to global semiconductor companies to set up fabs in the country, after a similar move failed a decade ago. But most of the global leading semiconductor companies still stay unresponsive due mainly to a lack of a complete ecosystem in South Asia.
ASML expects to post an around 35% revenue increase in 2021, with gross margin reaching between 51% and 52%.
Backend houses have seen their delivery lead times for MCUs, audio ICs, USB interface ICs and power management chips extend all the way to as long as two months from the previous two weeks, due to persistently tight wire-bonding capacity supply, according to market sources.
China-based AI and HPC chip developers have quietly stepped up their pace of orders demanding advanced-node manufacturing at TSMC, according to industry sources.