Taiwan’s IC Industry Set to Grow 15.4% to $163 Billion in 2021, Predicts TSIA

Taiwan's semiconductor industry is poised for significant growth this year, with the IC output expected to reach $163.1 billion, marking a 15.4% increase, according to the Taiwan Semiconductor Industry Association (TSIA). This growth surpasses the overall semiconductor industry's projected growth rate of 13.1%, indicating Taiwan's strong position in the global market.

Despite challenges faced last year, Taiwan's IC industry is showing resilience and adaptability. In 2021, the IC industry production value in Taiwan experienced a decline of 10.2%, amounting to $139.2 billion, as reported by the Industrial Economics and Knowledge Center. However, the industry is now on a trajectory of recovery and growth.

The Taiwan IC manufacturing sector is expected to be a key driver of growth in 2022, with a forecasted increase of 16.6% to $98.7 billion. Leading this growth is Taiwan Semiconductor Manufacturing Company (TSMC), with anticipated sales of $92.7 billion. This sector's performance is crucial for Taiwan's overall economic health and technological advancement.

Furthermore, Taiwan's IC design sector is projected to witness a substantial output rise of 14.6% to $40 billion this year. Additionally, the IC packaging segment is expected to grow by 11% to $14 billion, while IC testing is forecasted to increase by 12.6% to $6.8 billion. These developments underscore the diverse strengths and capabilities of Taiwan's semiconductor industry.

In 2022, the Taiwan semiconductor industry made a significant contribution to the country's GDP, accounting for 13.1% or $95 billion. This highlights the industry's importance as a key pillar of Taiwan's economy and its role in driving innovation, employment, and economic growth.

On a global scale, the semiconductor industry continues to demonstrate robust performance, with global Q4 semiconductor sales reaching $146 billion, reflecting an 8.4% quarter-on-quarter increase and an 11.6% year-on-year growth, according to the World Semiconductor Trade Statistics (WSTS). Taiwan's strong growth projections align with this global trend, positioning the country as a key player in the semiconductor market.