New Delhi [India], May 19 (ANI): Taiwan's semiconductor industry is set to witness a strong expansion in 2025, with output value expected to rise by more than 19 per cent, according to the Industrial Technology Research Institute (ITRI), as reported by Focus Taiwan.

The government-supported body attributed the anticipated growth to better performance in th the IC manufacturing and IC design sectors.

According to the news report by Focus Taiwan, in its latest IEK Current Quarterly Model report, ITRI projected that the output of Taiwan's semiconductor industry would reach NTD 6.33 trillion (USD210 billion) in 2025.

This marks a 19.1 per cent increase from the previous year and surpasses ITRI's earlier forecast in February, which had predicted a 16.2 per cent rise to NTD 6.17 trillion.

Breaking down the figures, the IC manufacturing segment is expected to record the highest growth. Its output is likely to grow 23.1 per cent year-on-year to NTD 4.2 trillion in 2025.

This is higher than the previous projection of a 19.4 per cent rise. Meanwhile, the IC design segment is forecast to see a 13.9 per cent increase in output value, reaching NTD 1.44 trillion, up from the earlier estimate of an 11.3 per cent rise.

Other segments are also expected to see moderate growth. The IC packaging sector is projected to generate NTD 461.5 billion in 2025, up 9 per cent from a year ago.

Similarly, the IC testing segment is expected to grow by 6 per cent to NTD 212.2 billion, according to ITRI data.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has projected a 24-26 per cent growth in sales in 2025, driven by increased demand for advanced chip making technologies amid the rise of artificial intelligence.

Analysts believe TSMC's strong performance will continue to boost the IC manufacturing and design sectors in Taiwan.

In the first quarter of this year, Taiwan's semiconductor industry posted an output value of NTD 1.48 trillion. While this was a 0.4 per cent decline from the previous quarter, however it represented a significant 27.6 per cent jump from the same period last year.

ITRI said that many clients placed bulk orders earlier than usual in the first quarter to avoid disruptions from U.S. President Donald Trump's unpredictable tariff policies. This strategy helped boost production during what is typically a slower period.

Looking ahead, ITRI expects Taiwan's IC industry to generate NTD 1.53 trillion in output in the second quarter, reflecting a 20.6 per cent increase year-on-year and a 2.9 per cent rise from the first quarter. (ANI)