Taiwan’s Microchip Industry to be Worth $135 Billion in 2024

The production of advanced microchips is not keeping up with the level of development of artificial intelligence systems. OpenAI co-founder Sam Altman announced a plan to raise 5 to 7 trillion dollars to change the supply chain of ultra-modern microchips

Despite growing concerns about the shift of electronic component production from Taiwan to Japan and the USA, the island’s semiconductor industry is “thriving.” It is expected to be valued at $135 billion in 2024. This conclusion was reached by analysts from the financial research and consulting center Market Intelligence & Consulting Institute (MIC) in Taipei.

The projections were presented at the MIC workshop. It analyzed the current situation and prospects of the semiconductor industry in Taiwan and the world in light of “inventory adjustments and changes in global supply and demand.” According to MIC analysts, the growth of the microchip industry will continue to “favor long-term demand from various industries,” including automotive, smartphones, but primarily because of the accelerated development of artificial intelligence (AI). In particular, Taiwanese industry revenues from so-called “wafers” (thin plates of semiconductor material, such as silicon crystal, from which chips are made) are expected to grow 15% year-on-year in 2024, while sales of memory chips could increase by at least 20%.

MIC’s special report focused on the connection between the accelerated development of artificial intelligence and the production of particularly advanced microchips. OpenAI co-founder Sam Altman recently announced his intention to raise 5 to 7 trillion dollars to change the semiconductor supply chain in order to address the chip shortage in AI development. And the MIC study analyzed the potential impact and implications of Altman’s plan on the semiconductor industry and the broader artificial intelligence development environment, looking at both challenges and opportunities.