The overall output value of Taiwan’s semiconductor industry is expected to hit a new high of NT$4.9 trillion (US$151.15 billion) next year, up 14.1 percent year-on-year, an Industrial Technology Research Institute (ITRI) expert said at a forum in Taipei on Monday.
The semiconductor sector should gradually regain momentum and hit an all-time high in production value next year because of robust demand for artificial intelligence (AI) and high-performance computing applications, said Terry Fan (范哲豪), a manager with ITRI’s Science and Technology International Strategy Center.
For the global semiconductor industry, production value would rise an estimated 12.6 percent next year to US$580.9 billion, thanks to recovering end markets that would absorb bloated inventories by the end of this year, Fan said.
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Automotive semiconductors would show the strongest growth in applications, while generative AI would continue to play an increasingly important role in technology development, he said.
This year, the production value of the global chip foundry sector is expected to shrink 12 percent from last year to US$124.82 billion, with Taiwan Semiconductor Manufacturing Co (台積電) garnering a 55 percent share of the market, up from 53 percent the previous year, center analyst Huang Hui-hsiu (黃慧修) told the forum.
The slide is being driven in part by semiconductor customers maintaining high inventories, leaving them less likely to place new orders, Huang said.
However, with chip inventories expected to be drawn down in the months ahead, the output value of Taiwan’s chip foundry sector would rise 14.7 percent next year to about NT$2.82 trillion because of strong demand for 3-nanometer chips, Huang said.
The production value of Taiwan’s semiconductor manufacturing sector is expected to exceed NT$3 trillion for the first time ever next year at about NT$3.01 trillion, up 14.3 percent from this year, Huang said.
Meanwhile, the production value of the domestic IC design industry is expected to be NT$1.07 trillion this year, accounting for a global market share of 21.3 percent, the second-highest after the US, center analyst Sayumi Chung (鍾淑婷) said.
However, the IC design sector’s NT$1.07 trillion production value would be a 12.9 percent fall from last year, while the sector’s output would rise 16.4 percent next year to NT$1.25 trillion, Chung said.
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