Electronic enthusiasts Network observation: the third quarter of semiconductor major events analysis

In the third quarter of 2012, Taiwan's overall IC industry output value (including design, manufacturing, packaging, testing) amounted to NT $439.7 billion, which grew 4.9% from the second quarter of 2012. In the third quarter of 2012, the performance of IC design industry in Taiwan was significantly superior to that of IC manufacturing industry and IC Packaging test industry, and the growth of 12.4% benefited from the huge pie in the wisdom terminal market. PC sales declined, DRAM shipments decreased, and memory output declined ham 9.3% as the worst performers, as global sentiment fell less than expected in the third quarter.

First watch IC design industry, in the third quarter of 2012, Taiwan's IC design industry since the second half of the 2011 after the product line adjustment pains, has continued to appear two consecutive quarters of growth. Taiwan IC Design has been actively from PC/NB into the smartphone, tablet and other fields, and has successfully penetrated many international brand manufacturers supply chain. With the domestic IC design industry to grab more intelligent handheld devices wafer market opportunities, as well as China's LCD TV, consumer products, such as driving and controlling the growth of chip shipments. In the third quarter of 2012, Taiwan's IC design industry output was NT $113.5 billion, which grew 12.4% from the second quarter of 2012

Taiwan's overall IC manufacturing output grew by 2.7% over the previous quarter, to NT $223.9 billion, compared with a growth of 18% per cent over the same period last year. The performance of various industries: the wafer foundry industry grew by 6.3% compared with the previous quarter, and grew by 25% over the same period last year. In the wafer foundry part, the value of communication in this quarter accounted for about 49% of the total output value of the wafer foundry, communications include tablets and smart phones, whether in the application processor or the base frequency part, the demand is quite strong, making the third quarter of 2012 output value of QoQ and YoY are showing growth. The memory manufacturing industry, which is down 9.3% from the previous quarter, is down 3.2% from a year earlier, as demand for tablets and smartphones has squeezed the growth of personal computers, leading to weak demand for standard-type memory.

Taiwan IC Seal Survey Industry part of the third quarter of 2012, the overall IC seal measurement industry output growth than expected, although the mobile phone and tablet computer application chip still have growth strength, but the growth rate is lower than the previous assessment. Taiwan's survey industry due to the stock adjustment is still in progress, upstream customers began to revise orders, DRAM production and Windows 8 delivery deferred, PC-side demand weak, and other factors, Taiwan's third quarter of the survey plant revenue lack of peak season due to growth momentum. In the third quarter of 2012, Taiwan's packaging output was NT $70.7 billion, a small growth of 2% in the previous quarter. In the third quarter of 2012, Taiwan's testing industry output was NT $31.6 billion, a small growth of 2.3% in the previous quarter.

Table I. 2012 third quarter Taiwan IC industry production value statistics and estimates

Unit: NT billion

Source: Ike Itís Plan, Institute of Engineering and Research (2012/11)

Analysis of major events in the third quarter

1. Huawei Heiss is expected to launch its own four-core processor in the fourth quarter of the advanced smart phone

February 2012 Heiss announced the development of K3v2 processor, quad core A9, the frequency of 1.2GHz and 1.5GHz respectively. Huawei claims more than Tegra3 about 30%~50%, is expected to launch in the second half of the 2012 K3v2 advanced mobile Phones, by the TSMC foundry 40nm manufacturing process, wafer area 12x12mm. Huawei has published its k3v2 processor in MWC 2012, showcasing the first smart phone Ascend D Quad, which is highly demonstrated by its own attempt to develop a higher-order application processor. Ascend D Quad supports WCDMA and WAPI functions, quotas 4.5 inch 720p touch screen, built-in 1GB ram,800 million, Android 4.0 system.

Heiss has successfully established high order application processor technology with the help of parent company Huawei as its initial product testing site and providing stable order source. Huawei is China's largest system maker, and will have the opportunity to build the power of Heiss's higher-order application processor market in the future with Apple and Samsung models. Moreover, it is expected that the future of Huawei's higher-order smart phone chip platform will weigh heavily on Heiss, which will have a detrimental effect on Taiwan's future development of higher-order applications.

2. Yaco start transformational niche memory, discard standard DRAM

With DRAM demand and weak prices this year, Yaco has suffered losses, streamlining and adjusting personnel and downsizing within the Formosa group is rare. Yaco and announced the abandonment of standard DRAM and its own brand, Yaco's 50,000-piece capacity will be transformed into a niche memory.

If Yaco fully converts its capacity and technology into a base-type memory, it will inevitably compete with other niche memory factories such as Hua Bang, Li Jing, and memory IC design companies such as Yu Chuang, Jing Hao branch and so on, which is bound to cast a shock bullet to the niche memory market. The production mode of standard type memory is large in quantity, and standard production mode, so good rate and efficiency is the company's most important competitiveness, but the niche type of memory production model for more samples, the business process is bound to undergo a period of pain, it is expected that Yaco will need to spend a period of time to adjust.