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Global semiconductor industry to grow by over 10% in 2025, says Taiwan's SMC

Global semiconductor industry to grow by over 10% in 2025, says Taiwan's SMC

Time of India17-05-2025
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.
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