Taiwan’s semiconductor industry is projected to generate nearly USD 300 billion in revenue this year, marking growth of more than 40% from last year as artificial intelligence demand accelerates chip development.
Wu Chih-i, president of the Taiwan Semiconductor Industry Association, gave the forecast on September 2, at the opening of the SEMICON expo in Taipei. He said the semiconductor sector entered a new phase shaped by advances in AI technology.
Taiwan is a major global center for semiconductor manufacturing. Its factories produce chips used across smartphones, electric vehicles and other technologies. Almost all of the world’s most advanced chips are manufactured on the island.
The industry’s importance has also created tensions with the United States. President Donald Trump accused Taiwan of taking away part of the US chip industry and has pushed Taiwanese manufacturers to expand production on American soil.
Wu said the industry also faces growing challenges in securing energy supplies, skilled workers and cyber security. He stressed that no single country could control the entire semiconductor supply chain.
“Continuous progress will require closer cooperation among semiconductor-producing nations,” Wu said.
Global investment in AI surged as governments and technology companies committed billions of dollars to data centers. These facilities support AI systems ranging from chatbots and image-generation tools to software agents capable of performing tasks.
The spending strengthened the earnings of major chipmakers, including Taiwan Semiconductor Manufacturing Co, and helped push global stock markets to record levels this year.
Investors, however, are questioning how quickly the heavy AI spending will generate returns. Concerns have also emerged that some technology company valuations may have risen too far.
Ajit Manocha, head of SEMI, said the current decade could be defined by AI. He cautioned that the industry was still in its early stages and would face further challenges as the technology develops.
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