Taipei: The global semiconductor market is expected to be worth more than US$2 trillion by 2030 because of growth driven by demand for artificial intelligence infrastructure, an executive at Semiconductor Equipment and Materials International (SEMI) said Monday.
According to Focus Taiwan, Clark Tseng, SEMI's senior director of market intelligence, mentioned that earlier projections had estimated the market to reach about US$1 trillion by 2030 based on demand for traditional applications like personal computers, smartphones, and consumer electronics. However, those forecasts have changed significantly as AI data centers increase demand for advanced logic chips, high-bandwidth memory (HBM), and enterprise solid-state drives (SSDs), Tseng disclosed at a press conference ahead of SEMICON Taiwan 2026.
The market is projected to surpass US$1.5 trillion in 2026. Despite the semiconductor demand outpacing overall economic and investment growth, PC and smartphone shipments remain under pressure, Tseng stated. He added that AI is reshaping semiconductor growth, driving sustained demand for advanced logic, HBM and DRAM, high-layer-count NAND, testing, and advanced packaging equipment.
In a market outlook due to be released in September, SEMI anticipates the global wafer fab equipment market to grow from US$117 billion in 2025 to US$220 billion in 2028, up from a previous forecast of US$200 billion for 2028. The association also increased its 2028 forecasts for testing equipment from US$20.8 billion to US$23.5 billion and for packaging equipment from US$8.6 billion to US$10 billion, Tseng noted. These revisions reflect stronger investment in 2-nanometer and 3-nm production capacity, and rising demand for HBM, enterprise SSDs, and more complex chip testing and packaging, he explained.
The global semiconductor materials market is expected to post double-digit growth in both 2026 and 2027, reaching US$83 billion this year and US$92 billion next year. Taiwan is anticipated to account for approximately 30 percent of the market in 2027, highlighting its significance in advanced manufacturing and packaging, Tseng said.
On the same occasion, Tien Wu, chair of the SEMI International Board of Directors and chief executive officer of ASE Technology Holding Co., indicated that the rapid expansion of AI was exerting stress on Taiwan's resources. Wu pointed out that the ecosystem required to meet strong AI demand was creating short-term pressure on land, talent, capital, and electricity in Taiwan, while also raising concerns in other countries about the concentration of semiconductor production in Taiwan.
Wu emphasized that AI's long-term value will not come from replacing existing human knowledge but from enabling cross-disciplinary innovation and replicating successful applications on a larger scale. He suggested that Taiwan should accelerate investment in AI infrastructure while strengthening ties with international partners and explaining the purpose of that investment more clearly.
SEMICON Taiwan will be held from Wednesday through Friday at Taipei Nangang Exhibition Center Halls 1 and 2. The event will feature more than 1,300 exhibitors and is expected to attract over 100,000 visitors, according to Terry Tsao, SEMI's global chief marketing officer and president for Taiwan.