Taiwan drives chip industry's global growth: SEMI president

Taipei, Sept. 4 (CNA) Taiwan is expected to play a major role in driving global economic growth through its central position in the integrated circuit (IC) manufacturing sector, semiconductor industry leaders said on Wednesday.

Speaking at the opening ceremony of SEMICON Taiwan 2024, an annual semiconductor industry expo, SEMI President and CEO Ajit Manocha said that the industry is "counting on Taiwan to play a big role" in artificial intelligence (AI) that will drive global economic growth.

"AI enabled growth is going to be more than 50% of the growth that we are in for next decade," Manocha told the audience that included Taiwan's Premier Cho Jung-tai (卓榮泰), foreign delegations and SEMI top executives.

SEMI is a U.S.-based association that promotes the global semiconductor industry.

The IC industry alone "ended last year at US$600 billion in revenue, and it took us 70 years to get there," Manocha said. "But in the next seven to eight years, it will be US$1 trillion."

In the next decade of quantum computing, the IC industry might reach four to five trillion by 2050, he stressed, adding that "Taiwan plays a major role" in all of these high-tech areas.

Cho also spoke at the ceremony, highlighting "Taiwan's responsibility" in the global industry.

"Taiwan and its people understand the responsibility we bear in global supply chains, and the Taiwanese government will shoulder the responsibility of making sure to improve the investment and production environments [in the country]," Cho said.

Meanwhile, Manocha said he does not believe in the end of Moore's Law, referring to the observation made in 1965 by Gordon Moore, co-founder of Intel, that the number of transistors in an integrated circuit doubles every two years, meaning chips get smaller and smaller.

"I think the way AI is coming into the picture, and the advanced package, the heterogeneous integration, the chiplets, all of which are only enhancing Moore's law and the functionality of the chip," Manocha said.

"I think we will continue driving the growth of this industry, and all those activities are happening right here in Taiwan," the SEMI CEO said.

Nicky Lu (盧超群), executive director of the Taiwan Semiconductor Industry Association, echoed Manocha's optimism, saying that he expects a "golden age" of at least 20 years for the IC industry as the Internet of Things (IoT) sector continues to grow alongside the global rise of AI and quantum computing.

"Taiwan's 2024 semiconductor revenue will reach US$160 billion again, more than 25 percent of the worldwide revenue," Lu said.

"Mankind is setting up a global zero carbon emission target, demanding research and development breakthroughs, especially in semiconductors," he added.

To drive these innovations forward, "Taiwan has been working hard and in close collaboration with global partners effectively," he said.

Lu cited Taiwan Semiconductor Manufacturing Co. (TSMC) -- which is building fabs in the United States, Japan, and Germany -- as an example of Taiwanese companies expanding their operations overseas.

"Advanced Semiconductor Engineering Inc. is also investing in Malaysia, Mexico and the U.S., and GlobalWafers Co. now runs 18 facilities in nine countries," he said.

Mary Puma, chair of SEMI International board of directors, said SEMICON Taiwan underscores Taiwan's pivotal role in semiconductor supply chains.

"Given its strategic importance, regional cooperation is becoming increasingly critical, and the exhibition will deepen cross-border exchanges, foster innovation and strengthen partnerships," she said.

SEMICON Taiwan 2024 is being held from Wednesday to Friday at the Taipei Nangang Exhibition Center.