China demand set to buoy Taiwan ASIC designers in 2021

Cage Chao, Taipei; Jessie Shen, DIGITIMES Asia 0

Taiwan-based ASIC and SoC design service providers including Alchip, Faraday Technology and Global Unichip will continue to enjoy robust demand from China's chipmaking industry in 2021 with revenue set to be driven by a strong pull-in of orders for China's homegrown chip solutions, according to industry sources.

Despite China being the largest consuming country for ICs, production by China-headquartered companies still accounted for less than 10% of the country's total IC market in 2020.

China is looking to boost its IC self-sufficiency, with focus placed on chip solutions for not only mobile and consumer technology devices but also base stations and servers, the sources said. Taiwan-based silicon IP and ASIC service providers are gearing up for a boom in demand from China's chipmaking industry, the sources continued.

Backed by government incentives, China's homegrown IC sectors are expected to see further development in 2021, the sources believe. The output of China-headquartered companies is expected to grow substantially this year, as more large-scale enterprises step into IC development in-house, the sources said.

In related news, IC design service company Alchip Technologies saw its revenue climb 63.4% on year to a record high of NT$7.08 billion (US$253.6 million) in 2020, with earnings per share reaching NT$13.52. Silicon IP provider eMemory Technology also had its revenue hit an all-time high of NT$1.78 billion last year, with EPS coming to NT$9.52.