AI Demand Boosts Semiconductor Industry Outlook for Second Half

(Central News Agency reporter Chang Chien-chung, Hsinchu, June 14) Robust and sustained demand for artificial intelligence (AI) has led multiple semiconductor manufacturers in Taiwan—including Insyde Software, United Microelectronics Corporation (UMC), and Vanguard International Semiconductor—to anticipate that industry conditions in the second half of the year will outperform the first half. Taiwan Silterra, a semiconductor silicon wafer manufacturer, also expressed an optimistic outlook for the second half.

Most industry players view strong AI demand as a key driver boosting the sector’s performance in the second half. In particular, the rise of generative AI has unexpectedly strengthened demand for traditional servers, leading to a sharp increase in demand for central processing units (CPUs), resulting in a supply shortage across the market.

Insyde Software, a server management chip manufacturer, noted that customer demand remains strong, with supply-side constraints being the biggest factor affecting operations. By adding new packaging suppliers, Insyde expects its performance to grow sequentially throughout 2023—second-half revenue to exceed the first half, Q3 to surpass Q2, and Q4 to exceed Q3.

UMC, a foundry services provider, expects its operations to gradually heat up in the second half. The company cited strong demand in the power management chip market and an increasing revenue contribution from its 22-nanometer process technology as the primary growth drivers.

Taiwan Silterra observed that customer inventory strategies have shifted from de-stocking to restocking, indicating that the semiconductor silicon wafer industry has emerged from its trough. Order visibility has clearly improved, and the company remains optimistic about its second-half outlook.

RF chipmaker Richwave Technology noted that rising prices of components such as memory have affected order visibility in the networking market. However, with new projects progressing steadily, the company expects second-half revenue to exceed the first half.

ASMedia, a high-speed interface chipmaker, expressed a relatively conservative outlook for the second half. The company pointed to rising memory prices and tight CPU supply, which have led to weakening demand from motherboard manufacturers—a trend that may persist into the second half and impact ASMedia’s performance. In response, the company plans to accelerate the expansion of its proprietary product business. (Edited by Chang Liang-chih) 1150614