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Taipei, June 13 (CNA) The production value of Taiwan’s semiconductor sector is expected to hit a new high in 2024, up more than 17 percent from a year earlier, due to global demand driven up by artificial intelligence development, according to the government-supported Industrial Technology Research Institute (ITRI).
In its latest IEK Current Quarterly Model (IEKCQM) report, ITRI said the output of the local semiconductor industry is expected to top the NT$5 trillion (US$155 billion) mark for the first time to reach NT$5.11 trillion this year, up 17.7 percent from a year earlier.
ITRI said with AI development extending to end user devices from cloud-based services, international brands’ efforts to unveil gadgets, such as AI PCs and AI phones, are expected to boost demand for semiconductors.
According to ITRI, AI phones are expected to take a 20 percent share in the global smartphone shipments in 2024 and the ratio will grow rapidly to 70 percent in 2028.
In addition, AI PCs are expected to grasp a 20 percent share in the global PC shipments in 2024 and the ratio will also grow rapidly to 80 percent in 2028, ITRI said.
The think tank said Taiwan’s semiconductor industry is forecast to perform better than the global IC industry, output of which is expected to grow 13.1 percent from a year earlier in 2024.
The ITIR forecast echoed the guidance given by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), which reiterated its sales in U.S. dollar terms will grow 21-26 percent in 2024, outpacing the 14-19 percent growth expected for the global pure-play wafer foundry industry.
According to ITRI, as Taiwan’s IC manufacturing segment is expected to benefit from an improvement in high-end processes and enjoy a rebound in dynamic random access memory (DRAM) chip prices, its output is forecast to grow 20.2 percent in 2024.
The production value of the local IC design segment is meanwhile expected to grow 15.1 percent due to moderating inflation and strong demand for AI PCs and AI phones, ITRI said.
As for the IC packaging and testing segment, ITRI said, the output is expected to grow 11.4 percent in 2024 largely due to rising demand for high-end processes and technology integration.
For the whole year of 2024, Taiwan’s manufacturing sector is expected to generate about NT$23.1 trillion in output, up 6.47 percent from a year earlier, ITRI said.
