Forecast: Local Semiconductor Sector to Reach New Heights by 2024
The local semiconductor sector in Taipei is set to experience exponential growth, with production value expected to hit a new high in 2024. According to the Industrial Technology Research Institute (ITRI), the sector is projected to rise more than 15 percent from the previous year, driven by increased demand for artificial intelligence applications and the diminishing impact of inventory adjustments.
ITRI’s research report reveals that Taiwan’s semiconductor sector is forecasted to reach NT$5.01 trillion (US$160 billion) in output, marking a 15.4 percent increase from 2022. The sector had experienced a 10.2 percent decline in output due to global demand weakness and inventory adjustments. However, the situation is expected to change in the coming years as demand steadily recovers.
The IC manufacturing segment, the largest in the semiconductor sector in terms of output, is anticipated to generate approximately NT$3.1 trillion in production value by 2024—a significant growth of 16.6 percent from the previous year. This segment’s performance is also expected to outshine the other major segments, including IC design, IC packaging, and IC testing.
Within the IC manufacturing segment, pure play wafer foundry operators are expected to report NT$2.91 trillion in output by 2024, a 16.6 percent increase compared to the previous year. This positive forecast aligns with Taiwan Semiconductor Manufacturing Co.’s (TSMC) projections of 21-26 percent sales growth in 2024, driven by strong global demand for advanced technologies like artificial intelligence and high-performance computing devices.
Although the first quarter of 2024 is traditionally a slow season for the semiconductor industry, the IEK predicts a year-on-year output increase of 13.1 percent. The industry is expected to rebound from a quarter earlier, despite a 5.2 percent decline in production value. The IC design, manufacturing, packaging, and testing segments are projected to report a sequential decline in output but will still showcase significant year-on-year growth.
While the local semiconductor sector faced challenges in recent years, the positive forecast for 2024 indicates a promising future. With continuous advancements in technology and the growing demand for emerging applications, the industry is poised to reach new heights and contribute significantly to the global semiconductor market.
Forecast: Local Semiconductor Sector to Reach New Heights by 2024
The local semiconductor sector in Taipei is projected to experience exponential growth, with production value expected to reach a new high in 2024. This growth is driven by increased demand for artificial intelligence applications and the diminishing impact of inventory adjustments.
According to the Industrial Technology Research Institute (ITRI), the semiconductor sector in Taiwan is forecasted to reach NT$5.01 trillion (US$160 billion) in output by 2024, marking a 15.4 percent increase from 2022. The sector had experienced a decline in output due to global demand weakness and inventory adjustments, but this is expected to change as demand steadily recovers.
The IC manufacturing segment, which is the largest in the semiconductor sector in terms of output, is anticipated to generate approximately NT$3.1 trillion in production value by 2024, a significant growth of 16.6 percent from the previous year. This segment’s performance is expected to outshine the other major segments, including IC design, IC packaging, and IC testing.
Within the IC manufacturing segment, pure play wafer foundry operators are expected to report NT$2.91 trillion in output by 2024, a 16.6 percent increase compared to the previous year. This aligns with Taiwan Semiconductor Manufacturing Co.’s (TSMC) projections of 21-26 percent sales growth in 2024, driven by global demand for advanced technologies like artificial intelligence and high-performance computing devices.
Despite the traditionally slow first quarter of 2024 for the semiconductor industry, the sector is predicted to experience a year-on-year output increase of 13.1 percent, rebounding from the previous quarter. Although there may be a decline in production value, the IC design, manufacturing, packaging, and testing segments are expected to show significant year-on-year growth.
While the local semiconductor sector has faced challenges in recent years, the positive forecast for 2024 suggests a promising future. With continuous advancements in technology and increased demand for emerging applications, the industry is poised to reach new heights and contribute significantly to the global semiconductor market.
Key Terms/Jargon:
1. Semiconductor sector: The industry focused on the manufacturing and production of semiconductor components used in electronic devices.
2. Production value: The total value of goods and services produced by a sector or industry.
3. Artificial intelligence (AI): The simulation of human intelligence processes by machines, typically used to perform tasks that usually require human intelligence, such as decision-making and problem-solving.
4. Inventory adjustments: Changes made to the amount or composition of goods or materials held in inventory, typically done to align with changes in demand and market conditions.
5. IC manufacturing: The manufacturing of integrated circuits (ICs), which are electronic components used in various electronic devices.
6. IC design: The process of creating the layout and circuitry for integrated circuits.
7. IC packaging: The process of enclosing integrated circuits in protective casings to facilitate their use and protect them from damage.
8. IC testing: The process of evaluating the functionality and performance of integrated circuits.
Related Links:
– Industrial Technology Research Institute (ITRI)
– Taiwan Semiconductor Manufacturing Co. (TSMC)
– Semiconductor Industry Association
The source of the article is from the blog karacasanime.com.ve