Nicky Lu, chairman of Etron Technology, emphasized at the DIGITIMES Tech Forum 2025 in Taipei that artificial intelligence (AI) and semiconductors form a "perfect match," a symbiotic relationship that solidifies Taiwan's critical role in the global technology supply chain.
"Without Taiwan's supply chain, the US AI industry couldn't turn a profit," Lu said, forecasting that the global semiconductor market will hit US$1 trillion by 2030 and double to US$2 trillion by 2040.
AI unleashing the next wave of killer applications
Lu said AI has fundamentally changed the trajectory of technological progress. Whereas earlier eras delivered one breakthrough at a time, such as notebooks or smartphones, AI can unleash multiple killer applications simultaneously, both upgrading existing products and opening new markets.
He outlined three stages in AI's evolution:
◉ Practical enhancements — smartphones, notebooks, and software still have wide gaps for improvement, and AI will deliver those tangible upgrades.
◉ Automation and autonomy — drones, unmanned ships, and self-driving cars will define the next wave.
◉ Human–AI integration — in the longer term, seamless interaction between the human brain and AI will give people intuitive, continuous access to information.
Taiwan's ongoing transformation
Reflecting on history, Lu credited Taiwan's semiconductor rise to Li Kwoh-ting — described by the New York Times as the "Godfather of Technology" — and TSMC founder Morris Chang, whose 1987 vision positioned Taiwan as a chip manufacturing hub. That decision created global champions such as TSMC and paved the way for companies like MediaTek.
However, Lu cautioned that Taiwan has only traveled "half the journey" from manufacturing to design leadership. While MediaTek has emerged as a global force, Taiwan's overall design ecosystem remains underdeveloped.
Looking ahead, Lu urged Taiwan to pursue what he dubbed "TSAC," following TSMC's naming convention, a vision of Taiwan evolving from a manufacturing and design stronghold into a new paradigm where AI and semiconductors converge. He said Taiwan must invest boldly in this convergence to carry the pioneering spirit of 1987 into the AI era.
The Si 4.0 era
Lu described the coming decade as the dawn of the Si 4.0 era, a phase of tight integration between semiconductors and AI systems. Under this shift, the US$1 trillion milestone by 2030 appears inevitable, with output doubling again to US$2 trillion by 2040.
He warned Taiwanese companies not to frame their strategies around 2030 alone. "The industry must envision what Taiwan will look like in 2040 and start preparing now."
Article edited by Jerry Chen
