Supply chain
Digitimes Research: Taiwan IC design industry output value to grow 14% in 3Q15
Nobunaga Chai, DIGITIMES Research, Taipei

The production value of Taiwan's IC design industry is forecast to rise 14.4% sequentially in the third quarter of 2015, thanks to peak seasonal effects, as well as rollouts of new smartphones and other mobile devices, according to Digitimes Research.

Combined revenues of Taiwan-based IC design houses are forecast to reach NT$141.06 billion (US$4.46 billion) in the third quarter, down 3.5% from the same period in 2014, however, said Digitimes Research.

Taiwan's IC design houses generated a combined NT$123.29 billion in the second quarter of 2015, representing a slight 0.7% sequential increase but a decline of 10.6% from a year ago, Digitimes Research indicated. Due to continued weakness in the PC market as well as slower-than-expected growth in smartphone shipments worldwide, device manufacturers have been engaged in inventory adjustments, Digitimes Research observed.

In the second quarter, MediaTek generated revenues of NT$47.04 billion leading Taiwan's IC design industry. MediaTek's revenues for the quarter showed decreases of 1% sequentially and 13.1% on year.

MediaTek with its new Helio X10 and X20 SoC series has put increased focus on the high-end smartphone market segment. Shipments for MediaTek's high-ASP solutions will buoy the overall production value of Taiwan's IC design industry in the third quarter, Digitimes Research said.

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