Taiwan's semiconductor output growth forecast has been raised

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.

- TBG NETWORK

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.