DIGITIMES forecasts that Taiwan's semiconductor foundry industry revenue will exceed US$130 billion in 2025, representing a year-on-year increase of over 30%. This growth is driven by strong demand for advanced processes fueled by AI applications, as well as uncertainty surrounding US policies prompting the supply chain to actively procure goods, further boosting revenue.
In 2026, with continued strong AI demand, Taiwan's semiconductor foundry revenue is projected to grow by over 10% year-on-year, setting a new record. However, geopolitical risks remain a significant variable for the development of Taiwan's semiconductor foundry industry. Unstable factors include the US-China trade war and US tariff policies, all of which have considerable impact.
Taiwan's semiconductor foundry revenue is projected to exceed US$130 billion in 2025, a year-on-year increase of over 30%, driven by AI applications and inventory buildup in the supply chain. Looking ahead to 2026, the AI race will continue, with cloud data centers expanding their AI computing power, leading to sustained strong demand for AI accelerators and AI ASICs.
Chart 1: Key factors affecting Taiwan wafer foundry industry, 1Q25-4Q25
Chart 3: Taiwan key wafer foundry revenues, 2Q24-4Q25 (US$b)
Chart 5: Taiwan foundry revenue share by manufacturing node, 2Q24-4Q25
Chart 6: Taiwan key wafer foundry revenues, 2020-2026 (US$b)
Chart 7: US reciprocal tariffs and Semiconductor Section 232 investigation timeline
Chart 8: Projected inflation levels for US by the Fed, 2025-2026
Chart 9: Global major IT products Y/Y shipment growth, 2020-2026
Chart 10: Capacity expansions by Taiwan key foundry, 2026 (k units of 12-inch wafers)
Chart 11: Taiwanese foundries' revenue outlook and key topics
