MIC held the 37th MIC FORUM Spring Seminar from April 16th to 18th, focusing on semiconductor capacity dynamics. MIC has surveyed global capacity and has predicted the distribution of Taiwan's IC manufacturing capacity worldwide by 2030. Global semiconductor capacity is estimated to grow by 6% in 2024, driven by the recovery of end-market demand, AI, high performance computing (HPC) applications, and various government incentive measures, accelerating the expansion of global advanced processes and wafer foundry capacity. In 2024, Taiwan's IC manufacturing capacity accounted for 18% of the global total, with a 6% expansion expected.

Global Semiconductor Supply Chain Value in 2023(e): US$867.9B

Note: Global semiconductor supply chain comprises of Fabless (IC Design), IDM, Foundry, IC Packaging & Testing, Equipment, Materials, EDA, and IP sectors
Source: Respective companies, compiled by MIC, April 2024

Looking further into the development of Taiwan's IC manufacturing industry, Taiwanese companies accounted for 86% of capacity in Taiwan in 2023, while overseas capacities were distributed as follows: China 8%, Singapore 3%, Japan 2%, and the United States 1%. Looking ahead to 2030, Taiwan is expected to remain the focal point of Taiwanese manufacturing capacity and the first mass production site for advanced processes. It is estimated that Taiwanese IC manufacturing companies' capacity in Taiwan will account for 80%, with Japan at 7%, China at 6%, Singapore at 4%, the United States at 2%, and Germany at 1%.

Taiwan's Third-generation of Semiconductor Output Reached Over US$615M in 2024

Over the years, MIC is paying attention to two major topics in the semiconductor industry's development. Firstly, in 2023, the domestic output value of third-generation of semiconductors was NT$18.3 billion (US$572M; US$`1= NT$31.8), a decrease of 7% compared to 2022. This was mainly due to the adverse economic environment affecting the domestic industry, which relies mainly on wafer foundry services. In 2024, new wafer foundry capacities for the third-generation of semiconductors will gradually release, and domestic power device manufacturers will enter the third-generation of semiconductor arena. It is estimated that Taiwan's output value of third-generation of semiconductors will reach NT$19.6 billion (US$616.4 million) in 2024 and NT$22.1 billion (US$650 million) in 2025. Secondly, fiber optic transmission in data centers continues to drive silicon photonics technology development. As data centers require higher transmission bandwidth and rates, optical fibers are gradually replacing copper wires in high-speed data exchange applications. In addition to data transmission applications, demand from sensing applications such as medical materials, autonomous vehicles, and aerospace will also accelerate the development of other silicon photonics products. Analyzing technological products, in the short term, they mainly respond to the large-scale demand in data centers and communication fields. It is expected that optical data exchange technologies such as on-board optics (OBO) and co-packaged optics (CPO) at the circuit board level will rapidly develop with the increasing demand for AI and HPC multi-application computing, eventually evolving towards internal data transmission within a single chip or external optical I/O development.

Market Intelligence & Consulting Institute (MIC) hosts the MIC Forum at Shangri-La's Far Eastern Plaza Hotel, Taipei (Taiwan) from April 16-18. For further information, please visit the Event website (available in Mandarin only).

About Market Intelligence & Consulting Institute (MIC):

Established in 1987, Market Intelligence & Consulting Institute (MIC) is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in Taiwan. MIC specializes in industry and market research. With over three decades of experience, MIC provides valuable insights and data-driven recommendations to assist businesses in making informed decisions.

To know more about this topic, please visit: Is AI Set to Fuel Massive Semiconductor Demand!? (free download), Stay Ahead: 2023 Semiconductor Industry Research Value Pack, Industry Policies of Third-Generation Semiconductors - SiC - in Japan, Korea, and China

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