IC industry to grow 17pc to US$70b

The global integrated circuits industry is expected to grow 17 percent to US$70 billion (HK$546 billion) in 2020, and rise another 6.8 percent in 2021, according to a DigiTimes report.

The newspaper also said that Taiwan Semiconductor Manufacturing Company and Samsung Electronics will continue expanding their capacity.

The Covid-19 pandemic and Sino-US trade war will put pressure on the global semiconductor supply chain, but 2020 output will be driven up by stay-at-home activities in the second half, the report said.

DigiTimes expects the industry output to grow at a five-year compound annual growth rate of 6-7 percent to reach US$95 billion in 2025. However, the Sino-US trade dispute remains the biggest uncertainty.

Meanwhile, the Taiwan dollar closed at the strongest level since 2011 amid speculation the local central bank will continue loosening its grip on the rallying currency.

Yesterday's advance followed from September's 1.4 percent gain, one of the largest for major currencies versus the US dollar. The Taiwan central bank's relatively hands-off approach recently is a sign that officials may allow further strengthening. The gains also come amid signs of solid economic growth, with data from exports to manufacturing showing expansion in August.

In other news, shares of Semiconductor Manufacturing International (0981) dropped 4.64 percent to HK$17.28 yesterday after Chinese chipmaker warned US export restrictions may have adverse effects.