According to the Taiwan Semiconductor Industry Association, Taiwan’s semiconductor industry is projected to reach new heights in 2024, with production set to increase by 22% to a record-breaking 5.3 trillion New Taiwan dollars ($165 billion).
This anticipated growth is driven by rising demand for advanced chips, particularly those used in generative AI servers. In 2023, the sector experienced a 10.2% dip in output, totaling NT$4.3 trillion, largely due to weakened demand from the computer and smartphone markets.
Cliff Hou, the association chairman and a deputy co-chief operating officer at Taiwan Semiconductor Manufacturing Co. (TSMC), expressed optimism about Taiwan’s expanding role in global semiconductor supply chains. “Taiwan leads the world in chip production, packaging, and inspection and ranks second in chip design,” Hou stated, highlighting the island’s significant influence in the global chip market.
The association also announced plans to boost its position further by creating new committees for chipmaking equipment this year and for materials by 2025, aiming to encourage more Taiwanese investment across various stages of the semiconductor production process.
Despite concerns over potential U.S. protectionist policies under former President Donald Trump, who was recently re-elected, Hou reassured reporters that the longstanding Taiwan-U.S. semiconductor partnership would endure. “While certain specifics might evolve, our broader cooperation will continue,” he said, underscoring Taiwan’s commitment to maintaining strong ties with the U.S.
