Taiwanese contract chipmaker Taiwan Semiconductor Manufacturing Co TSM trended on Tuesday as the global industry association for the semiconductor industry projects upside for the sector, backed by Taiwan’s moat, driven by the artificial intelligence frenzy.
The chipmaker gained 27% year-to-date as Big Tech giants’ ambitions (including Microsoft MSFT, Meta Platforms META, Alphabet GOOGL ) fuel demand for its chips.
Semiconductor Equipment and Materials International framed SEMICON Taiwan 2025 as proof that AI reshapes semiconductor industry dynamics and fuels record investment.
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The group projected global semiconductor equipment sales will climb 7.4% to $125.5 billion in 2025 and rise another 10% in 2026, with AI and high-performance computing (HPC) equipment making up 40% of spending this year and more than 55% by 2030.
Beneficiaries are clear: Taiwan’s equipment investments will surge over 70% to $28 billion, driven by graphics processing units (GPUs), high-bandwidth memory, advanced packaging, and 3D stacking. SEMI leaders said the world’s leading cloud providers plan to boost capital expenditures from $210 billion in 2024 to $310 billion in 2025, further lifting demand.
SEMI executive Terry Tsao said SEMI’s alliances, such as the Silicon Photonics Alliance and the new 3DIC Advanced Manufacturing Alliance, show Taiwan shaping global standards. Doris Hsu of GlobalWafers highlighted AI’s impact on pricing strength.
At the same time, ASE CEO Tien Wu said Taiwan’s advanced manufacturing will keep it two to three years ahead in AI and data center technologies.
SEMI projected Taiwan’s semiconductor equipment billings will double in 2025 as manufacturers boost production to meet soaring AI demand. Director Clark Tseng said billings jumped 134% year-over-year in the first seven months, marking the fastest global growth, driven by heavy investment in GPUs and high-bandwidth memory, the Taipei Times reported on Tuesday.
He noted South Korea’s billings rose 38% over the same period, while China posted an 11% decline due to last year’s high base.
SEMI expects worldwide equipment billings to grow 7–10% in 2025, led by 23% growth in integrated circuit (IC) testing and 6–7% in wafer equipment.
It expects advanced process and memory chip gear to account for 40% of billings this year, rising to 55% by 2030.
ASE Technology COO Tien Wu added that Taiwan will likely sustain a two- to three-year technology lead in AI and data center development despite global semiconductor supply chain restructuring.
Price Action: TSM stock is trading higher by 1.90% to $251.80 at last check on Tuesday.
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