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Taiwan’s Semiconductor Industry Poised for Robust Growth in 2024

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The Institute of Industrial Intelligence (MIC) has unveiled its forecast for Taiwan’s semiconductor industry, projecting an output value of NT$3.77 trillion for 2023, with an estimated surge to NT$4.29 trillion in 2024, marking a substantial 13.7% growth. Wafer foundry operations are anticipated to lead this expansion, particularly in advanced manufacturing sectors.

MIC highlighted global semiconductor trends, underscoring economic challenges and sluggish demand in 2023, resulting in diminished purchasing sentiment across corporate and consumer markets. This has led to excess inventory levels and a lack of drive to attract goods within the semiconductor supply chain.

Looking ahead to 2024, despite an anticipated first-quarter traditional off-seasonal dip, it is projected to outperform the corresponding period of the previous year, breaking a four-quarter decline trend. Memory manufacturers’ production reductions are expected to stabilize prices, assuming a central role in global semiconductor market growth from 2024 to 2026.

Examining specific sectors, short-term memory prices are poised for stability as international manufacturers continue production cuts. In the IC design, packaging, and testing industries, recovery performance is expected to face challenges in the next two quarters, particularly for wafer foundries, despite leveraging advanced processes.

MIC industry consultant Pan Jianguang emphasized that as mainstream product market recovery remains uncertain, the future of the global semiconductor market hinges on emerging applications like information services, energy conservation, and technology integration, with a special emphasis on AI, new energy sources, and smart networking. In 2027, AI servers and electric vehicles are projected to drive substantial growth, emerging as pivotal forces in the semiconductor industry’s expansion.

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