Taiwan’s Industrial Technology Research Institute raised its 2025 forecast for the semiconductor industry, projecting output value will reach NT$6.33 trillion ($192 billion), representing 19.1% growth compared to 2024. The revised estimate exceeds February’s prediction of 16.2% expansion.
The upward adjustment reflects stronger-than-expected performance in integrated circuit design and manufacturing segments. First quarter 2025 semiconductor output reached NT$1.48 trillion, marking a slight 0.4% decline from the previous quarter but a substantial 27.6% year-over-year increase.
Taiwan’s semiconductor sector continues to outpace global industry growth rates, cementing its position as a critical hub in the worldwide chip supply chain. TSMC, the world’s largest contract chipmaker, remains the primary driver behind this growth trajectory with its advanced manufacturing technologies and expanding capacity for artificial intelligence applications.
The positive outlook aligns with broader industry trends as generative AI and data center build-outs fuel demand for advanced semiconductor products. Despite this optimism, analysts note potential headwinds including geopolitical tensions and ongoing efforts by other regions to reduce dependency on Taiwan’s chip ecosystem.
