Taiwan chip output to hit record $165bn on AI demand

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20241107N taiwan semiconductor TSIA chairman

Cliff Hou, deputy co-chief operating officer at TSMC, speaks at a Nov. 7 meeting of the Taiwan Semiconductor Industry Association, which he chairs. (Photo by Hideaki Ryugen)

HIDEAKI RYUGEN, Nikkei staff writer

November 8, 2024 01:06 JST

HSINCHU, Taiwan -- Taiwan's semiconductor production is on track for a 22% increase this year to a record 5.3 trillion New Taiwan dollars ($165 billion), an industry association said Thursday.

Demand for cutting-edge chips, including for generative artificial intelligence servers, is expected to put production back on a growth trajectory. Output fell 10.2% to NT$4.3 trillion in 2023 amid sluggish demand tied to computers and smartphones.