1. Memory is expected to grow by more than 24%, mainly driven by the increasing penetration of high-end products such as HBM3 and HBM3e with HBM4 expected to be introduced in H2. Non-memory is expected to grow 13%, driven by demand for advanced node ICs for AI servers, high-end mobile phone ICs, and WiFi7.

2. Asia-Pacific IC design market will grow 15% as inventory levels stabilise, personal devices demand picks up, and AI computing extends to a wide range of applications.

3. Under the traditional Foundry 1.0 definition (i.e fabbing) , TSMC’s market share is projected to climb steadily from 59% in 2023 to 64% in 2024 and 66% in 2025. In Foundry 2.0 (includes fabbing, non-memory IDM manufacturing, packaging and testing, and photomask manufacturing) TSMC’s share will grow rapidly from the 28% it had in 2023.

4. The expansion of advanced nodes (below 20nm) is accelerating. TSMC builds 2nm and 3nm in Taiwan and 4/5nm in the U.S. which will soon be in mass production. Samsung is building  2nm in Hwaseong, Korea and  Intel is focusing on 18A process development. Wafer manufacturing is projected to increase by 7% annually in 2025, with advanced nodes capacity rising by 12% annually. Average capacity utilisation rate is expected to remain above 90%.

5 Mature node (22nm-500nm) demand  will increase,  8-inch fabs are expected to see their average capacity utilisation rate climb to 75% from 70% in 2024, while 12-inch mature nodes will see their average capacity utilization rate rise to more than 76%. Foundry capacity utilization is expected to increase by an average of 5 percentage points in 2025.

6. With all three leading edge manufacturers entering 2nm mass production, 2025 will be a critical year. TSMC is expanding its fabs in Hsinchu and Kaohsiung, which is expected to enter mass production in the second half of the year. Samsung is expected to enter production earlier than TSMC. Intel will focus on 18A.

7. In 2025, China’s packaging and testing market share will continue to rise, while Taiwanese players will consolidate their packaging advantages in high-end chips such as AI GPUs. The overall packaging and testing industry is expected to grow by 9% in

8 FOPLP will grow rapidly from 2025 onwards. TSMC’s CoWoS production capacity continues to multiply, with the target of expanding from 330,000 wafers in 2024 to 660,000 wafers in 2025, an annual increase of 100%, with the CoWoS-L product line increasing by 470% per annum as the main driving force. Taiwan’s equipment supply chain, including wet etching, dispensing, crystal picking, and other key process equipment vendors, will have more growth opportunities in this wave of production expansion.