Taipei: Taiwan’s semiconductor sector is anticipated to experience a significant growth of over 19 percent in output value by 2025, primarily driven by robust performances in the IC manufacturing and IC design segments, as reported by the Industrial Technology Research Institute (ITRI).
According to Focus Taiwan, ITRI’s latest IEK Current Quarterly Model report projects the local semiconductor industry’s output to reach NT$6.33 trillion (US$210 billion) in 2025, marking a 19.1 percent increase from the previous year. This forecast surpasses a prior estimate made in February, which predicted a 16.2 percent rise to NT$6.17 trillion.
The IC manufacturing segment is expected to see a 23.1 percent increase in output to NT$4.2 trillion in 2025, exceeding the earlier forecast of a 19.4 percent increase. Meanwhile, the IC design segment is projected to grow by 13.9 percent to NT$1.44 trillion, outperforming the previous estimate of an 11.3 percent rise.
The report also indicates that the IC packaging segment is predicted to produce NT$461.5 billion in output, a 9 percent rise from the prior year, while the IC testing segment is expected to generate NT$212.2 billion, up 6 percent year-on-year.
Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker globally, forecasts its sales to grow between 24-26 percent in U.S. dollar terms this year, fueled by strong demand for high-end processes in the AI era. This anticipated growth in TSMC’s sales is likely to bolster Taiwan’s IC manufacturing and design sectors, according to market analysts.
In the first quarter, Taiwan’s semiconductor industry reported a production value of NT$1.48 trillion, which, despite a 0.4 percent decline from the previous quarter, represents a 27.6 percent increase compared to the same period last year.
The ITRI noted that many clients in Taiwan’s IC industry expedited their orders in the first quarter to mitigate potential impacts from U.S. President Donald Trump’s unpredictable tariff policies, thereby boosting production during a typically slow period. Looking forward, ITRI forecasts the IC industry’s output to reach NT$1.53 trillion in the second quarter, up 20.6 percent from the previous year and 2.9 percent from the preceding quarter.