TAIPEI (Taiwan News) — Taiwan’s integrated circuit (IC) output is expected to grow by 22% to NT$5.3 trillion (US$165 billion) this year, the Industrial Technology Research Institute (ITRI) said Wednesday (Oct. 23).

ITRI researcher Fan Che-hao (范哲豪) said at a seminar on Wednesday this year’s output will exceed the NT$5.11 trillion estimate made in June, per CNA. He said this increase is due to the major foundries raising their growth projections.

As demand for computing chips in sectors such as smartphones, AI, and automotive electronics grows, the global semiconductor industry is expected to exceed US$600 billion, marking a growth of about 16%, Fan explained.

Fan said Taiwan remains a key player in global semiconductor manufacturing and is expected to continue this critical role. It is projected that by 2025, driven by demand from AI and high-performance computing, Taiwan's IC industry output could reach NT$6 trillion, a 16.5% growth.

Additionally, Fan said that as transistor miniaturization approaches its limits, heterogeneous integration packaging technologies, such as fan-out panel-level packaging (FOPLP) and 3D packaging will create new opportunities.