Mon, Nov 13, 2017 - Page 15 News List

Taiwanese semiconductor industry forecast to grow 7.1% next year: IEK

DRIVER:A center of the Industrial Technology Research Institute identified the rapid development of ‘Artificial Intelligence of Things’ as the main driver in the industry

Staff writer, with CNA

The production value of Taiwan’s semiconductor industry is expected to grow more than 7 percent annually next year as demand increases for integrated circuit (IC) devices for artificial intelligence applications, according to the Industrial Economics and Knowledge Center (IEK, 產業經濟與趨勢研究中心).

In a report released on Monday last week, the IEK, which is part of the government-sponsored Industrial Technology Research Institute, said it expects the production value of the nation’s IC industry to hit NT$2.64 trillion (US$87.5 billion) next year, registering the world’s highest growth of 7.1 percent.


The forecast growth for this year is 0.5 percent, with output of NT$2.46 trillion, the center said.

The fast development of Artificial Intelligence of Things (AIoT) should boost Taiwan’s semiconductor industry next year, and by 2020 its annual output is likely to reach NT$3 trillion, the center said.

It said that with the development of AIoT, innovations in mircochips for such applications are expected to gain momentum, which will boost demand for IC design, manufacturing, and packaging and testing services.


The global tech world has merged the two acronyms for artificial intelligence (AI) and the Internet of Things (IoT) into AIoT in recognition of AI as the backbone of IoT development.

AIoT will bring new business to Taiwan in the fields of semiconductors, communications, electronic components, flat panels, “smart” vehicles and machinery, “green” energy, agricultural technology, biotech and medical care, the center said.

Meanwhile, the nation’s semiconductor industry will continue to invest in AI chip production as demand grows for chips made using sophisticated 10 nanometer and more advanced processes, it said.


The forecast echoed Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman Morris Chang’s (張忠謀) outlook.

Chang, who leads the world’s largest contract chipmaker, last week said that his company has been investing heavily in AI and the Internet of Things.

That investment had contributed significantly to TSMC’s bottom line, Chang said, adding that the company would continue to invest in new technologies.

AI would affect healthcare the most and would see the development of applications that, for example, could prevent strokes, Chang said.

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