TAIWAN – Taiwanese contract IC foundries are expected to produce $3.66 billion worth of product, up 16.9% sequentially, thanks to growing demand, according to the Taiwan Semiconductor Industry Association.

The sector began recovering in the second quarter, with an output of $3.13 billion, up 13.2% sequentially, according to TSIA.

TSIA predicts third-quarter output will increase 5.5% year-over-year. The trend will follow decreases in inventory brought about by growing demand for PCs, cellphones and other consumer electronics, as a result of positive seasonal sales and outsourcing of orders for nanotech products reported by integrated device manufacturers, the report said.