Taiwan’s semiconductor industry is on track for a record year as booming demand for artificial intelligence pushes its revenue close to $300 billion, the head of the Taiwan Semiconductor Industry Association said Wednesday.
Wu Chih-i, president of the association, said Taiwan’s chip sector is expected to grow by more than 40 percent this year, marking a sharp increase from 2025.
Speaking at the opening of the SEMICON exhibition in Taipei, Wu said the semiconductor industry has entered a new technological era as AI drives demand for more advanced chips and accelerates innovation.
Taiwan is a key player in the global chip supply chain, producing a large share of the world’s most advanced semiconductors. Its chips are used in a wide range of products, including smartphones, electric vehicles and AI systems.
The surge in AI investment has benefited Taiwanese manufacturers, particularly Taiwan Semiconductor Manufacturing Company (TSMC), as governments and technology companies spend billions of dollars on data centres and computing infrastructure.
The rapid expansion of AI has also helped push global technology stocks to record highs. However, concerns are growing over whether the huge investments in AI infrastructure will generate sufficient returns and whether some technology companies are now overvalued.
Wu warned that Taiwan’s semiconductor sector also faces growing challenges beyond rising demand. Energy supplies, skilled workers and cybersecurity are becoming increasingly important as chip production expands.
He also stressed that no single country can control the entire semiconductor supply chain.
“Continuous progress will require even closer semiconductor collaboration between many countries,” Wu said.
Ajit Manocha, head of SEMI, a global association representing the semiconductor industry and its supply chain, said the current decade could become the era of AI.
But he cautioned that the technology remains at an early stage and that the industry will face significant challenges as it develops.
“It’s not going to be a straight line,” Manocha told the SEMICON event, highlighting the uncertainty surrounding the rapid expansion of AI.
Taiwan’s growing chip revenues come as its dominance in advanced semiconductor manufacturing remains a major source of tension with the United States. US President Donald Trump has accused Taiwan of taking away American chip business and has pushed Taiwanese companies to expand production on US soil.
The latest revenue forecast highlights how strongly AI demand is reshaping Taiwan’s semiconductor industry, while also underscoring the growing importance of international cooperation to keep the global chip supply chain running.
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