TAIPEI (Taiwan News) — The Industrial Technology Research Institute (ITRI) said on Wednesday (June 12) Taiwan’s semiconductor output value will exceed NT$5 trillion (US$154 billion) in 2024, marking a historic first.

At its semiconductor industry outlook conference on Wednesday, the ITRI’s Industrial Economics and Knowledge Center team discussed industry trends, per CNA. The institute said it expects Taiwan's economic performance to be steady and moderate.

The ITRI said due to easing inflation and rising demand, industries including consumer goods and semiconductors are returning to growth. The electronics industry, driven by AI, will see a growth rate of 11.09% due to the increased demand for advanced semiconductors, it added.

“In 2024, AI development will shift from the cloud to the end-user, with AI PCs and AI smartphones becoming key applications for the widespread adoption of generative AI,” the institute explained. “Taiwan's semiconductor industry should seize this opportunity to develop relevant technologies and products.”

With the popularity of ChatGPT, the ITRI said major computer brands are launching AI-enabled PCs with neural network processors (NPUs), which eliminate the need for cloud-based computation, thus reducing latency. Features like voice recognition and image processing are becoming more intelligent, it said, per UDN.

The institute added smartphones are another focal point as they provide powerful on-device computing and have the largest user base and engagement. 

“The market share of AI smartphones is expected to grow from 20% of total smartphone shipments in 2024 to 70% by 2028,” it reported.