ITRI's Industry, Science and Technology International Strategy Center (ISTI) forecasts Taiwan's semiconductor industry output will top NT$9.7 trillion in 2026**, up **49.7%** from 2025, and further exceed **NT$10 trillion in 2027, reaching NT$11.8 trillion, up 21.5% year-over-year to a record high, driven mainly by AI and HPC.
Wang Xuanzhi, manager of ISTI's semiconductor research division, said continued AI data center buildout and expanding high-performance computing demand are strengthening Taiwan's semiconductor growth momentum. Advanced processes and advanced packaging are key output drivers, while mature and specialty processes support power management, connectivity, and peripheral applications, together forming a complete industrial advantage.
ISTI analyzed that AI is simultaneously raising requirements for compute performance, memory bandwidth, and high-speed interconnect, pushing semiconductors from process scaling toward tighter system integration. In IC manufacturing, 3nm demand is strong, and 2nm mass production continues ramping and expanding revenue contribution. In advanced packaging, CoWoS and heterogeneous integration enable AI chip and HBM integration, while silicon photonics and co-packaged optics (CPO) open new opportunities for high-speed transmission and energy efficiency. Taiwan's complete IC design, wafer manufacturing, and packaging and testing supply chain positions it to capture AI growth.
ISTI also noted that rising technology development costs, vendor competition, and supply chain localization will affect investment allocation and operating strategies. Maintaining technology leadership and mass production efficiency amid global expansion, while capturing end-application upgrades, will be key to Taiwan's semiconductor manufacturing growth.
ICgoodFind Summary: Taiwan's semiconductor output is forecast to rise from NT$9.7 trillion in 2026** to **NT$11.8 trillion in 2027, with two-year growth near 50% and 20%, driven by AI and HPC. 3nm demand, 2nm ramp, and CoWoS/CPO packaging evolution form the growth engine, while rising technology costs and supply chain localization add pressure on global expansion.
