The semiconductor sector in Taiwan is projected to reach record-high levels in production value by 2024, fueled by the increasing demand for artificial intelligence (AI) applications and the recovery from previous inventory adjustments. According to the Industrial Technology Research Institute (ITRI), the output of Taiwan’s semiconductor sector is expected to reach NT$5.01 trillion (US$160 billion), representing a 15.4 percent increase from 2022 when the sector experienced a decline in output due to global demand weakness.
The research report released by ITRI’s Industrial Economics and Knowledge Center (IEK) highlights that the IC manufacturing segment, the largest in the semiconductor sector, is anticipated to generate approximately NT$3.1 trillion in production value by 2024. This segment is estimated to experience the strongest growth among the four major segments, namely IC manufacturing, IC design, IC packaging, and IC testing.
Within the IC manufacturing segment, pure-play wafer foundry operators are projected to contribute NT$2.91 trillion in output, reflecting a 16.6 percent increase from the previous year. This aligns with the guidance provided by Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, which forecasts a sales growth of 21-26 percent in 2024 due to the rising demand for advanced technologies such as AI and high-performance computing devices.
The IC design, IC packaging, and IC testing segments are also expected to experience growth in output, with production values reaching NT$1.26 trillion, NT$436.2 billion, and NT$214.6 billion respectively, all demonstrating year-on-year increases.
While the IEK predicts a year-on-year growth of over 15 percent for 2024, they anticipate a 5.2 percent decline in production value for the first quarter of this year. This corresponds to the typical slow season observed in the industry. However, the first quarter is still projected to yield a 13.1 percent increase in output from the previous year due to a lower comparison base caused by inventory adjustments.
Overall, the future of the semiconductor sector in Taiwan appears promising, with significant growth anticipated in the coming years. The demand for AI applications and emerging technologies continues to drive the industry forward, contributing to an increased production value and positioning Taiwan as a key player in the global semiconductor market.
FAQ Section:
Q: What is the projected production value of Taiwan’s semiconductor sector by 2024?
A: The semiconductor sector in Taiwan is projected to reach NT$5.01 trillion (US$160 billion) in production value by 2024.
Q: What is fueling the growth in Taiwan’s semiconductor sector?
A: The growth in Taiwan’s semiconductor sector is being fueled by the increasing demand for artificial intelligence (AI) applications and the recovery from previous inventory adjustments.
Q: Which segment is expected to experience the strongest growth in the semiconductor sector?
A: The IC manufacturing segment, which includes pure-play wafer foundry operators, is expected to experience the strongest growth among the four major segments.
Q: What is the production value projected for the IC manufacturing segment?
A: The IC manufacturing segment is projected to generate approximately NT$3.1 trillion in production value by 2024.
Q: What is the estimated sales growth forecasted by Taiwan Semiconductor Manufacturing Co. (TSMC) in 2024?
A: TSMC forecasts a sales growth of 21-26 percent in 2024 due to the rising demand for advanced technologies such as AI and high-performance computing devices.
Definitions:
1. Semiconductor sector: Refers to the industry involved in the manufacturing and production of semiconductors, which are a key component of electronic devices.
2. Industrial Technology Research Institute (ITRI): A research institution in Taiwan that focuses on technological innovation and industrial development.
3. Output: Refers to the quantity of goods produced by a specific industry or sector.
4. IC manufacturing: Refers to the production of integrated circuits (ICs), which are small electronic devices that contain thousands or millions of electronic components.
5. IC design: Refers to the process of designing integrated circuits, including the layout and arrangement of electronic components.
6. IC packaging: Refers to the process of enclosing finished ICs in a protective package or casing.
7. IC testing: Refers to the process of testing the functionality and performance of integrated circuits before they are used in electronic devices.
Suggested Related Links:
1. Industrial Technology Research Institute (ITRI)
2. Taiwan Semiconductor Manufacturing Co. (TSMC)
3. Semiconductor Industry Association (SIA)
The source of the article is from the blog oinegro.com.br