Taiwan Semiconductor Surge: Industry Poised for 19% Growth by 2025

Taiwan's semiconductor industry is projected to expand significantly by 2025, with output expected to spike by over 19%, a report by the Industrial Technology Research Institute (ITRI) reveals. This growth is fueled by enhanced performance in integrated circuit (IC) manufacturing and design sectors, as highlighted by Focus Taiwan.

The latest IEK Current Quarterly Model report from ITRI predicts that Taiwan's semiconductor industry will attain an output value of NTD 6.33 trillion (USD 210 billion) in 2025. This projection marks a 19.1% increase from the previous year, exceeding ITRI's initial February forecast of a 16.2% rise.

Breaking down the numbers, IC manufacturing is expected to lead the growth charge with a projected 23.1% year-on-year increase, reaching an output of NTD 4.2 trillion in 2025. Meanwhile, the IC design sector is forecast to grow by 13.9%, achieving an output value of NTD 1.44 trillion. Other areas, such as IC packaging and testing, are set to see moderate growth, with outputs rising by 9% and 6%, respectively.

Taiwan Semiconductor Manufacturing Co. (TSMC), a leading global chipmaker, anticipates a 24-26% sales growth in 2025, spurred by a surge in demand for cutting-edge chip technologies due to the rise of artificial intelligence. Analysts suggest that TSMC's continued strong performance will bolster Taiwan's IC manufacturing and design sectors.

Despite a slight decline of 0.4% from the previous quarter, Taiwan's semiconductor industry posted an output value of NTD 1.48 trillion in Q1, marking a substantial 27.6% increase from the same period last year. ITRI attributes this to clients placing bulk orders early to avoid disruptions from U.S. tariff policies.

Looking forward, ITRI projects Taiwan's IC sector to generate NTD 1.53 trillion in the second quarter, indicating a 20.6% year-on-year growth and a 2.9% rise from the first quarter's figures. (ANI)

(With inputs from agencies.)