The worth of Taiwan‘s semiconductor output was anticipated to develop 22 p.c to greater than $164 billion this yr, a prime government from chipmaking large TSMC mentioned Thursday, pushed by AI technology and stronger financial development.
Taiwan is a worldwide energy in semiconductors, which have develop into indispensable in an array of industries, from electronics to wind generators, and even missiles.
TSMC, or Taiwan Semiconductor Manufacturing Firm, controls greater than half of the world’s output of chips and counts Apple and Nvidia amongst its shoppers.
Talking at an trade occasion in Taiwan, TSMC senior vp Cliff Hou mentioned the island’s semiconductor output was anticipated to succeed in NT$5.3 trillion ($164.2 billion) in 2024, up 22 p.c on final yr.
The rise was “pushed by developments in AI and gradual financial restoration”, mentioned Hou, who can also be the chairman of the Taiwan Semiconductor Trade Affiliation.
“We must always speed up analysis and improvement to make sure our standing as an indispensable member of the worldwide semiconductor provide chain,” Hou mentioned, in response to Bloomberg information company.
Hou’s remarks, coated by native media, got here after Donald Trump’s victory in the US presidential election. Trump has accused Taiwan of stealing the US chip trade, elevating fears the sector may very well be hit with tariffs.
TSMC is on the forefront of a generative AI revolution, churning out the world’s most superior microchips wanted to energy merchandise made by Silicon Valley.
Surging demand for AI was having a knock-on impact throughout your entire semiconductor provide chain in Taiwan, Wayne Lin, government vp at Witology Markettrend Analysis Institute, advised AFP.
“This enlargement contributes to Taiwan’s projected output, together with the standard peak season for cellular communications towards the year-end,” Lin mentioned.