Taiwan’s Semiconductor Industry Growth Forecast Raised to Over 22% by ITRI

Taiwan’s Semiconductor Industry Set for Robust Growth Amid AI Boom

Taipei, Taiwan – August 17, 2023: Taiwan’s semiconductor industry is poised for remarkable growth, with the Industrial Technology Research Institute (ITRI) projecting a staggering 22.2% increase in output value by 2025. This upward revision, from an earlier estimate of 19.1%, underscores the surging global demand for advanced chips, particularly driven by artificial intelligence (AI) applications.

In its latest report, the ITRI forecasts that the semiconductor sector will generate an impressive NT$6.5 trillion (approximately US$216.67 billion) in 2025. This optimistic outlook follows Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading contract chipmaker, which recently raised its sales growth forecast to 30%, up from a previous estimate of 24-26%.

The ITRI attributes this growth to the exceptional performance of the integrated circuit (IC) manufacturing segment, which is expected to reach NT$4.36 trillion in output, reflecting a remarkable 27.5% increase from the previous year. Notably, the pure foundry wafer business, where TSMC excels, is projected to achieve NT$4.16 trillion, marking a 28.3% rise.

The report also highlights growth across various segments: the IC packaging sector is anticipated to grow by 13.5% to NT$480.3 billion, while IC testing is expected to see a 15.2% increase, reaching NT$230.5 billion. However, the IC design segment’s growth forecast has been slightly adjusted downward to 12.1%, with an expected output of NT$1.42 trillion.

In the second quarter of 2023, Taiwan’s semiconductor industry reported an output value of NT$1.6 trillion, reflecting a 7.4% increase from the previous quarter. The IC manufacturing segment led the charge with NT$1.06 trillion in output, up 10.4%.

Looking ahead, the ITRI anticipates that the production value will rise to approximately NT$1.68 trillion in the third quarter, with the IC manufacturing segment expected to reach NT$1.15 trillion, a 7.3% increase from the second quarter.

As the global demand for AI technologies continues to escalate, Taiwan’s semiconductor industry stands at the forefront of this technological revolution, solidifying its position as a critical player in the global supply chain.