Taiwan’s semiconductor output forecast to fall 5.6 per cent in 2023, chilling economy
- The production value of Taiwan-made semiconductor chips is forecast to fall by 5.6 per cent year on year in 2023, according to a new estimate
- A slow year for chip makers will stifle Taiwan’s job market, temper new investments in tech hardware and ultimately weigh on economic output, analysts say
The production value of integrated circuits would decline by 5.6 per cent year on year to US$150.5 billion in 2023, according to Taiwan’s Industrial Technology Research Institute in a report commissioned by the Taiwan Semiconductor Industry Association.
The decline is worse than the report’s forecast of a 4.1 per cent fall in the global value of semiconductor output, and more dire than forecasts made last year.
A slow year for chip makers – many of which are trying to shed inventory as global demand eases following a surge in spending on consumer electronics early in the pandemic – would stifle Taiwan’s job market and temper new investments in tech hardware, analysts said.
After the big electronics boom in recent years, the sector is going through an inevitable adjustment
“After the big electronics boom in recent years, the sector is going through an inevitable adjustment,” said Frederic Neumann, chief Asia economist with HSBC in Hong Kong.
Tech firms could slow job creation, though not necessarily lay people off, said Tony Phoo, an economist with Standard Chartered Bank in Taipei.
