Output growth forecast for Taiwan semiconductors increased

Taipei [Taiwan], August 17 (ANI): Taiwan government-supported Industrial Technology Research Institute (ITRI) has raised its forecast for 2025 growth in the output value of the country 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 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 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)

Disclaimer: This news article is a direct feed from ANI and has not been edited by the News Nation team. The news agency is solely responsible for its content.