Soaring AI Demand Pushes Semiconductor Industry Revenue Towards $1 Trillion by 2030, According to TSMC
- Bloomberg
TSMC's advanced A14 technology set for factory production in 2028
Get ready for a tech explosion: Taiwan Semiconductor Manufacturing Co (TSMC) is gearing up to take the chip industry by storm, with their new A14 fabrication process slated for production in 2028. This innovative technology will propel TSMC beyond its current record-breaking 3-nanometer technology and the upcoming 2-nanometer process this year. In a twist of terminology, TSMC also plans to roll out an intermediary A16 chip process for late next year.
TSMC, Taiwan's most valuable company, has been on a hot streak, securing lucrative chipmaking deals with tech giants like Apple Inc and Nvidia Corp. This year, they've earmarked a whopping $40 billion for capital expenditures, with their long-term strategy still focusing on capturing the strong AI-driven market demand.
At a recent company event in California, TSMC executives shared exciting details about their new addition to their road map, highlighting how it would boost power efficiency and performance. Kevin Zhang, Deputy cochief operating officer, predictions point to a significant shift in the industry: instead of smartphone component makers adopting new technology first, AI chip designers are eager to sashay into the latest innovation sooner, thanks to the burgeoning AI trend.
TSMC remains bullish about the overall demand for semiconductors and predicts total industry revenue will "easily" surpass $1 trillion by the end of the decade. While this revenue target has been widely adopted by the industry, investor worries about an AI bubble have cropped up in recent weeks, following the announcement of sweeping tariffs by the US.
According to a slew of industry analyses, the A14 logic process technology is a game-changer, designed to fuel AI transformation by delivering faster computing and greater power efficiency. This revolutionary technology takes center stage at TSMC's annual North America Technology Symposium, with a keen focus on its next-generation AI chips.
The event, hosted by TSMC chairman C.C. Wei, was a grand affair. It drew registrations from over 2,500 attendees, marking TSMC's flagship customer event of the year. (CNA reporting also supplemented the event coverage.)
Pump up the volume, the semiconductor industry is revving up for a boom, with AI demand, regional dynamics, and technology innovations driving growth. By 2030, the market is projected to generate $390 billion in revenue from servers alone, AI chips could reach $112 billion, and the high-performance computing segment is expected to grow to $150 billion. TSMC, with its leadership in manufacturing efficiency and R&D, plays a crucial role in powering this industry surge. Global semiconductor capital expenditures are estimated to hit $185 billion by 2025, to meet the increasing demand.
Want more juice on semiconductor industry trends? Check out this enrich ment for a deeper dive into the key factors driving growth, market segmentation, and technology innovations.
- TSMC, a chipmaker based in Taiwan, aims to improve its technology by introducing the A14 fabrication process in 2028, which will reportedly be a game-changer for AI transformation.
- TSMC has earmarked significant expenditures for capital investments, specifically $40 billion in 2021, to capture the strong demand in the AI-driven market.
- By 2030, TSMC's technology focus on data-and-cloud-computing and artificial-intelligence is expected to contribute approximately $112 billion to the global AI chip market.
- In an effort to maintain and enhance its leadership position, TSMC continues to invest heavily in research and development, with global semiconductor capital expenditures anticipated to reach $185 billion by 2025.
