Global semiconductor industry to grow by over 10% in 2025, says Taiwan's SMC
The
global semiconductor industry
is expected to grow by more than 10 per cent in 2025, with strong demand being driven by artificial intelligence (AI) technologies, as per a Focus Taiwan report which cited a senior Taiwan
Semiconductor Manufacturing
Co. (
TSMC
) executive.
According to a news report on Thursday in Focus Taiwan, the industry is likely to reach a market value of over USD1 trillion by 2030.
The report also highlighted that the TSMC Deputy Co-Chief Operating Officer Kevin Zhang said the semiconductor sector is going through an "invigorating" period despite recent fluctuations in the market.
Zhang, who is also the company's Senior Vice President for Business Development and Global Sales, highlighted the growing demand for advanced chips used in AI applications, smartphones, computers, and internet of things (
IoT
) devices.
He noted that AI had a breakthrough year in 2024, and this trend is expected to continue in 2025. As a result, demand for chips manufactured using 5 nanometer (nm), 4 nm, and 3 nm technologies will remain strong. These advanced chips are widely used in AI-driven applications.
While the automotive market is facing some challenges, Zhang pointed out that new technologies like autonomous driving are boosting demand.
"While the automobile market is flagging, there continue to be new technologies, such as autonomous driving, driving demand for 12 nm and 8 nm products, as well as possibly 5 nm in the future", Zhang said, as per a news report by Focus Taiwan.
Looking ahead, Zhang said that by 2030, AI applications are projected to account for 45 percent of semiconductor sales. Smartphones will contribute around 25 percent, automobiles 15 percent, and IoT devices 10 percent.
On the technology front, Zhang shared that TSMC plans to start mass production of its advanced 14A (1.4 nm) chips in 2028. These chips will be 10-15 percent faster than the upcoming 2 nm chips or use 25-30 percent less power while delivering the same performance.
Overall, Zhang expressed confidence that the industry will continue to grow at a healthy pace in the coming years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
12 hours ago
- Time of India
Trump renegotiating Biden-era Chips Act grants, Lutnick says
President Donald Trump's administration is renegotiating some of former President Joe Biden's grants to semiconductor firms, U.S. Commerce Secretary Howard Lutnick said at a hearing on Wednesday, suggesting some awards may be axed. Some of the Biden-era grants "just seemed overly generous, and we've been able to renegotiate them," Lutnick told lawmakers on the Senate Appropriations Committee, adding the goal was to benefit American taxpayers. "All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place," Lutnick said, appearing to signal that not all the awards would survive renegotiation. Biden in 2022 signed the CHIPS and Science Act to plow $52.7 billion into boosting semiconductor chips manufacturing and research in the U.S. and luring chipmakers away from Asia. The program rolled out billions in grants for semiconductor heavyweights including Taiwan's TSMC, South Korea's Samsung and SK Hynix, as well as U.S.-based Intel and Micron . The grants, while signed, had only just begun to be disbursed by the time Biden left office. The details of those plans are not public but the money is meant to be disbursed as companies make progress toward their pledged plant expansions. More bang for the buck Lutnick pointed to TSMC as an example of successful renegotiation. He said the chipmaker -- which won a $6 billion Chips Act award -- had increased by $100 billion its initial pledge to invest $65 billion in U.S. manufacturing. "We were able to modify the award for the same $6 billion of (government) funding," he said. TSMC announced the $100 billion in added investment in March but it was not immediately clear whether that was part of a renegotiation of its Chips Act award. TSMC declined to comment. Reuters reported in February that the White House was seeking to renegotiate the awards and had signaled delays to some upcoming semiconductor disbursements. Lutnick also said the administration agrees with the goal of having more than 50% of global AI computing capacity in America, responding to concerns that deals like the one announced by Trump last month to allow the United Arab Emirates to buy advanced American artificial intelligence chips could deprive the United States of key AI computing power.
Time of India
15 hours ago
- Time of India
Trump renegotiating Biden-era Chips Act grants, Lutnick says
President Donald Trump's administration is renegotiating some of former President Joe Biden's grants to semiconductor firms, U.S. Commerce Secretary Howard Lutnick said at a hearing on Wednesday, suggesting some awards may be axed. Some of the Biden-era grants "just seemed overly generous, and we've been able to renegotiate them," Lutnick told lawmakers on the Senate Appropriations Committee, adding the goal was to benefit American taxpayers. "All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place," Lutnick said, appearing to signal that not all the awards would survive renegotiation. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo Biden in 2022 signed the CHIPS and Science Act to plow $52.7 billion into boosting semiconductor chips manufacturing and research in the U.S. and luring chipmakers away from Asia. The program rolled out billions in grants for semiconductor heavyweights including Taiwan's TSMC, South Korea's Samsung and SK Hynix, as well as U.S.-based Intel and Micron . Live Events The grants, while signed, had only just begun to be disbursed by the time Biden left office. The details of those plans are not public but the money is meant to be disbursed as companies make progress toward their pledged plant expansions. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories More bang for the buck Lutnick pointed to TSMC as an example of successful renegotiation. He said the chipmaker -- which won a $6 billion Chips Act award -- had increased by $100 billion its initial pledge to invest $65 billion in U.S. manufacturing. "We were able to modify the award for the same $6 billion of (government) funding," he said. TSMC announced the $100 billion in added investment in March but it was not immediately clear whether that was part of a renegotiation of its Chips Act award. TSMC declined to comment. Reuters reported in February that the White House was seeking to renegotiate the awards and had signaled delays to some upcoming semiconductor disbursements. Lutnick also said the administration agrees with the goal of having more than 50% of global AI computing capacity in America, responding to concerns that deals like the one announced by Trump last month to allow the United Arab Emirates to buy advanced American artificial intelligence chips could deprive the United States of key AI computing power.
Time of India
a day ago
- Time of India
GlobalFoundries boosts investment plans to $16 billion, with research focus
Chip manufacturer GlobalFoundries said on Wednesday it planned to increase its investment plans to $16 billion, allocating an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies. The Malta, New York-based company said it is working with the Trump administration to bring chip manufacturing technology and various components of that supply chain onto US soil. The chip manufacturer attributed the expansion to the boom in artificial intelligence hardware , a trend that has also benefited other chipmakers such as Taiwan Semiconductor Manufacturing Co. The $1 billion capital spending boost is expected to support factory expansions in New York and Vermont, and is in addition to the $12 billion the company said in 2024 it planned to invest over the next 10-plus years. GlobalFoundries did not disclose a specific timeframe for the additional funding it announced on Wednesday. Some of the work is already in progress, such as converting the factory in Vermont to produce chips using a technology called gallium nitride, which can be more power efficient than standard silicon in some applications. "The reason we're not sort of being super clear about exactly what's spent by when is because obviously some of this is demand-driven," GlobalFoundries CEO Tim Breen told Reuters. "We see a very strong demand, but it takes time to convert (demand) into specific ramps and project timing. And what you don't want to do is shoot too far ahead or fall too far behind." Live Events The $3 billion in research and development GlobalFoundries said it will spend will be split into three areas: chip packaging technologies, silicon photonics that can be used to make quantum computing processors, and gallium nitride, which is used in electric vehicles and other power-related applications, such as AI servers. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories In April, Intel and TSMC showed off their latest chip manufacturing and packaging capabilities at events, including the capability to stitch together multiple chips into a dinner-plate-sized device.
