The Institute for Information Industry's (III) Market Intelligence & Consulting Institute (MIC) hosted a press conference titled "2025 ICT Industry Trends and Impact Analysis of Trump 2.0 on Taiwan’s ICT Sector" on December 19. During the event, MIC unveiled its forecast for the top-10 ICT industry trends in 2025.
2025 Global ICT Industry Forecast
Source: MIC, December 2024
Top 10 ICT Industry Trends in 2025
Trend 1: Nations Race to Build Sovereign AI—Taiwan Provides Turnkey AI Computing Solutions
Governments are investing in domestic AI capabilities, with Taiwan's comprehensive AI infrastructure solutions playing a pivotal role in this global movement.
According to MIC Deputy Director General Jay Yang, Taiwan's industrial supply chain plays a critical role in offering turnkey solutions for AI infrastructure. With expertise spanning AI hardware components, server manufacturing, cabinet systems, and liquid cooling, Taiwan can help nations establish localized AI computing capabilities.
Trend 2: Geopolitical Tensions Split EV Supply Chains into U.S. and Non-U.S. Systems
As countries such as the U.S., Turkey, the EU, and Canada impose tariffs on EVs imported from China, geopolitical concerns will continue to divide EV supply chains into U.S. and non-U.S. systems by 2025. Key components like lithium batteries and smart vehicle electronics will be subject to stricter controls akin to semiconductor restrictions, based on origin and technology.
Trend 3: Advanced Model Investments Usher in a New Era of Knowledge Explosion
Global leaders are heavily investing in advanced models, accelerating innovation and knowledge development. Examples include DeepMind’s AlphaFold, which has identified over 200 million protein structures, and OpenAI’s o1 model, capable of reasoning and planning.
MIC anticipates that advanced models will revolutionize research process automation, combining AI with domain expertise to uncover new knowledge and drive infrastructure needs for AI model governance globally.
Trend 4: AI Agents Democratize Innovation Across Industries
AI Agents will redefine traditional development models by leveraging dynamic learning and intelligent capabilities. These agents significantly reduce barriers to innovation, enabling industries such as finance, retail, healthcare, and manufacturing to adopt transformative solutions.
Unlike traditional no-code/low-code platforms, AI agents autonomously plan, execute, and optimize tasks, enhancing productivity and efficiency. Their ability to learn from interactions and improve performance supports developers while emphasizing the critical role of architects in managing automation processes.
Trend 5: AI at the Edge—Heterogeneous Integration and Advanced Packaging Lead the Way
As AI moves toward edge applications, semiconductor advancements are essential. Technologies like heterogeneous integration and advanced packaging will address demands for high performance and compact designs. Vertical stacking and system-in-package solutions will improve energy efficiency, enabling diverse edge applications.
MIC predicts these innovations will drive breakthroughs in chip architecture and manufacturing ecosystems.
Trend 6: AI PC and Smartphone Penetration Soar in 2025
AI PCs are expected to reach a penetration rate of 15%, up from 1.3% in 2024, driven by NPU capabilities and diverse product offerings. Similarly, AI smartphones will grow to 31% penetration, spurred by flagship AI features cascading to mid-range devices by manufacturers like Apple and Qualcomm.
Trend 7: AI-Enhanced RAN Enables Telecom Operators to Cut Costs and Boost Revenue
By integrating AI with RAN, telecom operators can optimize spectrum efficiency, reduce costs, and enhance network performance. Combining AI with edge computing will also unlock new market opportunities, allowing operators to monetize AI computing capabilities for enterprise applications.
Trend 8: Large Enterprises Drive Green Initiatives and New Financial Opportunities
Taiwan’s 2025 energy management policies will expand green business opportunities to over 2,500 private enterprises, promoting energy service company (ESCO) growth and attracting private capital for energy-saving projects.
Trend 9: GAI Fuels Growth in Digital Twins and Simulation Technologies
The integration of Generative AI with digital twin and simulation technologies will redefine virtual application development, enabling advancements in manufacturing, gaming, healthcare, and education. These innovations will reduce operational barriers and enhance user experiences.
Trend 10: Expanding GAI Public Services—Building Trust is Key
GAI applications in public services will continue growing, addressing societal challenges through partnerships between governments, tech giants, and startups. Building public trust will remain a critical factor in successful implementation.
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.
For future receipt of press releases, please subscribe here
To know more about MIC's research findings, please access our website at https://mic.iii.org.tw/english/
For inquiries, please contact MIC Public Relations, Catherine Hung, at hungcat@iii.org.tw
If you prefer not to receive notifications, please click here to unsubscribe