TSMC Projects 10% Semiconductor Industry Growth in 2025 Driven by AI Demand
TSMC, the key semiconductor supplier to Nvidia and Apple, forecasts a robust 10% annual revenue growth for the global chip market in 2025, fueled by soaring AI technology demand.
Bill McColl brings over 25 years of expertise as a senior producer and writer in TV, radio, and digital media, leading news teams covering major global stories.
Highlights
- Leading chip manufacturer TSMC expects the semiconductor sector to grow 10% annually amid rising AI demand.
- TSMC's Senior VP Cliff Hou highlights a 2.5x increase in AI server demand compared to last year.
- Hou describes this period as a “golden age of opportunity” sparked by AI innovations.
Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier to Nvidia (NVDA) and Apple (AAPL), announced optimistic projections for semiconductor sales growth driven by artificial intelligence advancements.
Following the announcement, TSMC's American Depositary Receipts (ADRs) rose 0.6% to a record $157.09, marking a 51% increase year-to-date.
AI Sparks a New Era of Growth
Speaking at TSMC's Hsinchu headquarters, Senior Vice President Cliff Hou revealed the company’s forecast of 10% yearly revenue growth for the semiconductor industry in 2024, excluding memory chip sales. He emphasized a significant surge in AI server demand, which has grown approximately 2.5 times over the previous year.
Hou characterized this phase as a transformative “golden age of opportunity” fueled by AI technology breakthroughs.
Additionally, Hou mentioned that a moderate rebound in smartphone and PC demand, following previous inventory gluts, could further support industry growth.
The foundry segment, where TSMC leads globally, is expected to see revenue gains between 15% and 20% annually.
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