Taiwan Semiconductor Industry Output Forecasted To Rise More Than 19%

The Taiwan semiconductor industry’s output value is expected to rise by 19.1% to $210 billion due to the robustness of the IC manufacturing and IC design segments, as reported by the Industrial Technology Research Institute (ITRI) said as reported by Focus Taiwan.

Taiwan Semiconductor Optimism 

This estimate is higher than ITRI's February forecast of a 16.2 percent increase valued at $197.44 billion.

Taiwan Semiconductor Segments

IC Manufacturing: It is expected to rise by 23.1 percent from the previous year to be valued at $134.4 billion. The February forecasted estimate was at 19.4% due to strong demand for high-end processes in the artificial intelligence era.

IC Design: Similarly, this segment’s output is expected to grow at 13.9 percent from the previous year to be valued at $46.08 billion. Aligning to meet the high demand, this surpassed the February estimate of 11.3 percent.

IC Packaging: The segment is expected to see a 9 percent increase from the previous year to be valued at $14.77 billion.

IC Testing: It is expected to increase by 6 percent, seeing an output of $6.79 billion.

The testing and packaging do not contribute as much output as the design and manufacturing segments, but are in line with the higher demand.

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How TSMC is expected to benefit the semiconductor industry?

The Taiwan Semiconductor Manufacturing Co. (TSMC) is the world’s largest contract chipmaker and has forecasted a growth in sales between 24 to 26 percent.

TSMC’s growth is expected to further drive up Taiwan’s manufacturing and design businesses, as market analysts have said. This growth comes from the strong demand originating from high-end AI processes.

Despite seeing a drop of 0.4 percent in Q1 from the previous quarter, the YoY quarter growth is at 27.6 percent, valued at $47.36 billion.

This slump was witnessed due to uncertain market conditions brought by US President Donald Trump’s erratic tariff policy, due to which clients of Taiwan’s IC industry hurried to make large orders ahead of schedule.

Taiwan Semiconductor Q2 Predictions

The YoY growth in Q2 is expected to be a 20.6 percent rise, and QoQ growth is expected to grow at 2.9 percent, valued at $48.96 billion.