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Key Points

Taiwan's semiconductor industry is set for strong growth in 2025, with ITRI raising its forecast to 22.2%. TSMC leads the charge, revising sales growth to 30% due to booming AI demand. IC manufacturing is the top performer, expected to grow 27.5% next year. The foundry wafer segment, dominated by TSMC, is projected to expand by 28.3%.

Key Points: Taiwan Semiconductors Forecast to Grow 22% in 2025 on AI Demand

  • ITRI forecasts NT$6.5T semiconductor output in 2025
  • TSMC revises sales growth to 30% on AI demand
  • IC manufacturing leads with 27.5% growth
  • Foundry wafer business to surge 28.3%
3 min read

Output growth forecast for Taiwan semiconductors increased

ITRI raises Taiwan's 2025 semiconductor growth forecast to 22.2% as AI demand boosts TSMC and IC manufacturing output.

"The strong showing of the local semiconductor industry largely reflected the stronger-than-expected performance of the IC manufacturing segment. – ITRI"

Taipei, August 17

Taiwan's government-supported Industrial Technology Research Institute (ITRI) has raised its forecast for 2025 growth in the output value of the country's semiconductor industry to above 22 per cent on strong global demand for artificial intelligence applications, Focus Taiwan reported.

In its latest IEK Current Quarterly Model report, the ITRI said the local semiconductor industry will have output of NT$6.5 trillion (US$216.67 billion) in 2025, up 22.2 per cent from a year earlier, an upward revision from a 19.1 per cent increase estimate made in May.

The ITRI said the strong showing of the local semiconductor industry largely reflected the stronger-than-expected performance of the IC manufacturing segment.

The ITRI forecast came after Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, raised its forecast of sales growth to 30 per cent in 2025 from a previous estimate of 24-26 per cent.

According to the Focus Taiwan report, TSMC attributed the higher guidance to the greater computing power needed for emerging AI applications, which has driven higher global demand for advanced chips.

According to the ITRI, the IC manufacturing sector will generate NT$4.36 trillion in output in 2025, up 27.5 per cent from a year earlier, compared with an earlier estimate of a 23.1 per cent increase.

The output value of the pure foundry wafer business, where TSMC has taken the lead over its peers globally, is expected to reach NT$4.16 trillion, up 28.3 per cent from a year earlier, the ITRI said, as per the report.

In 2025, the IC packaging segment is expected to see its output rising 13.5 per cent from a year earlier to NT$480.3 billion, while the IC testing segment is expected to post NT$230.5 billion in output, up 15.2 per cent from a year earlier, the news report cited the ITRI report.

The IC design segment is expected to grow 12.1 per cent in 2025 to an output value of NT$1.42 trillion, and down from 13.9 per cent growth previously estimated, the ITRI said.

In the second quarter, Taiwan's semiconductor industry posted an output value of NT$1.6 trillion, up 7.4 per cent from a quarter earlier.

The IC manufacturing segment was the best performer in the industry, with NT$1.06 trillion in output, up 10.4 per cent from a quarter earlier, the ITRI said.

The institute said the production value of the local semiconductor industry is expected to rise to about NT$1.68 trillion in the third quarter, up 4.8 per cent from a quarter earlier, while the output of the IC manufacturing segment is forecast to hit NT$1.15 trillion, up 7.3 per cent from the second quarter.

- ANI

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Reader Comments

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Priyanka N
While impressive, I wonder how much of this growth is sustainable. The AI boom is driving demand now, but what happens when the market saturates? Taiwan's dominance makes global supply chains vulnerable to geopolitical risks too.
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Aditya G
TSMC's performance is mind-blowing! Their 30% growth projection shows why they're the gold standard. Indian companies like Tata should collaborate with them to build our domestic capabilities. Jai Hind! 🙌
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Sarah B
As someone working in Bengaluru's tech sector, these numbers are both inspiring and concerning. We're so dependent on Taiwanese chips - hope India's semiconductor mission can reduce this dependency in coming years.
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Karthik V
The IC manufacturing growth of 27.5% is phenomenal! But why is IC design segment growth slowing down? That's where India has some strengths - we should capitalize on this gap in the market.
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Nisha Z
These numbers prove how critical Taiwan is to global tech. But as an Indian, I worry about over-reliance on one region. Hope our government's semiconductor policy brings more balance to the supply chain.

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