The semi-conductor industry has been experiencing the double-digit growth rate during the past two decades. And hence billions of dollars have been invested n the industry due to the forecasts of continuously high demand. However, starting in 1996, the supply of the integrated circuits has far more exceeded the demand due to the capacities can not be absorbed by the market. Several leading companies expected record-low rate of returns and some manufacturing facilities even face the problem of being shut down. The semi-conductor industry has encountered the most serious recession which they believe will still last for a while. Valuable information can be obtained through the analysis of the demand pattern and this will definitely contribute to the success of making the correct decision. The purpose of this research is to forecast the production volume of the integrated circuits in Taiwan through the analysis of those precuts using integrated circuits. Multiple regression analysis. ARIMA model, and neural networks were used to build up the forecasting model. The result shows that neural networks has significantly better forecasting results in terms of MSE, normalized MSE, MAD, and MAPE.