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Taiwan’s TSMC forecasts global chip sales to rise by up to 13% this year

TSMC expects 5G expansion, AI development, digital transformation to drive chip growth in 2022

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TSMC. (Reuters photo)

TSMC. (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) expects global semiconductor sales, excluding memory chips, to grow by up to 13% this year.

TSMC said last week during an earnings call that due to the widening of 5G services, faster pace of artificial intelligence development, and acceleration of digital transformation, it expects electronics demand to increase global silicon sales, excluding memory chip revenue, by 11-13% in 2022, according to CNA.

The company said that due to the accelerated pace of commercialization of 5G services and the shorter life cycles of 5G smartphones, global smartphone shipments grew by 6% in 2021. The company said it forecasts sales in this sector to grow by 1-3% in 2022.

Sales of high-performance computing devices grew by 10% in 2021 due to the increased prevalence of working from home, which led to upgrades in servers and data centers, TSMC said. It expects this segment to grow by 1-3% this year.

Worldwide shipments of internet of things (IoT) devices grew by 30% in 2021 on the back of strong demand for home automation gadgets, smart watches, and smart health devices, the world’s largest contract chipmaker said. TSMC expects to see the IoT segment grow by 20% this year.

Global car sales grew by only 3% last year, hampered by the continuing automotive chip shortage and the ongoing pandemic, TSMC said, predicting that as car chip supplies improve this year, car sales should increase by 7-13%.

Meanwhile, TSMC said it is expecting the consumer electronics sector to contract by 1-3% this year. However, high-end mini-LEDs, OLEDs, and smart TVs should continue to see positive growth, according to the company.