Semiconductor sector output forecast to rise by double digits in 2025

Taipei, May 17 (CNA) Taiwan's semiconductor sector should see its output value rise by more than 19 percent in 2025 due to stronger performances of the IC manufacturing and IC design segments, the government-supported Industrial Technology Research Institute (ITRI) has said.

In its latest IEK Current Quarterly Model report, the ITRI said the output of the local semiconductor industry is expected to hit NT$6.33 trillion (US$210 billion) in 2025, up 19.1 percent from a year earlier.

The estimate was more optimistic than a previous ITRI forecast in February, which projected a 16.2 percent increase to NT$6.17 trillion.

For 2025, the output of the local IC manufacturing segment is expected to rise 23.1 percent from a year earlier to NT$4.2 trillion, beating an earlier forecast of a 19.4 percent increase, the ITRI said.

The IC design segment is expected to see its output value grow 13.9 percent to NT$1.44 trillion, beating the previous estimate of an 11.3 percent rise, according to ITRI figures.

The IC packaging segment is expected to generate NT$461.5 billion in output in 2025, up 9 percent from a year earlier, while the IC testing segment is expected to post output of NT$212.2 billion, up 6 percent from a year earlier, ITRI figures showed.

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has forecast its sales will grow 24-26 percent this year in U.S. dollar terms due to strong demand for high-end processes in the artificial intelligence era.

TSMC's growth is expected to drive up the growth of Taiwan's IC manufacturing and IC design businesses, market analysts said.

In the first quarter, the production value of Taiwan's semiconductor industry totaled NT$1.48 trillion, falling 0.4 percent from a quarter earlier but soaring 27.6 percent from a year earlier.

The ITRI said many clients of Taiwan's IC industry rushed to place large orders ahead of schedule in the first quarter to avoid getting hurt by U.S. President Donald Trump's chaotic tariff policy, giving a boost to production in the traditionally slow quarter.

Looking ahead to the second quarter, ITIR said, the output of Taiwan's IC industry is expected to hit NT$1.53 trillion, up 20.6 percent from a year earlier and up 2.9 percent from a quarter earlier.