Taiwan chip industry sees revenue soaring 40 percent in 2026

TAIPEI

The TSMC logo is seen on screens at the Taiwan Semiconductor Manufacturing Company (TSMC) Renovation Museum at the Hsinchu Science Park. (AFP Photo)

Revenue from Taiwan’s semiconductor chip sector is expected to soar 40 percent this year, a top industry official said on Sept. 2, driven by skyrocketing demand for artificial intelligence technology.

The island is a global powerhouse in the manufacturing of chips.

“This year Taiwan’s semiconductor industry performs even better. Our total revenue is projected to be close to $300 billion. That’s more than 40 percent growth over last year,” Wu Chih-i, president of the Taiwan Semiconductor Industry Association, said at the opening of the SEMICON expo in Taipei.

However, he added that energy supply, talent and cybersecurity were “becoming more critical” for the industry and “no single country” could dominate the chip supply chain.

Governments and tech giants are pouring billions into building data centers that can train and run AI tools.

This has turbocharged earnings of companies such as Taiwanese chip giant TSMC and driven global stock markets to all-time highs this year.

But there are concerns over when that investment will see a return, and warnings that company valuations have gone too far.

This would be the decade of AI, said Ajit Manocha, the head of SEMI, a global industry association for chip design and manufacturing supply chain.

But Manocha noted that the world was in the “early innings” and there would be “a lot more challenges” with the technology.

“It’s not going to be a straight line,” Manocha told SEMICON.

“We’re going to have to learn how to deal with and navigate through the new opportunities and new headwinds.”