Taiwan Semiconductor CEO Highlights AI-Powered Drones, Next-Gen Robots As Growth Drivers

Taiwan Semiconductor Manufacturing Co TSM chair and CEO C.C. Wei expects next-generation robots and artificial intelligence-powered drones to serve as key catalysts for growth and innovation in the tech sector.

According to Nikkei Asia, Wei made the comments at a Taiwan tech conference on Monday. He also flagged the need to integrate hardware and software to power the next generation of AI devices.

The Taiwanese contract chipmaker’s first Japan fab is on track for commercialization by 2024-end.

Also Read: Apple’s AirPods Production Shifts To India – Foxconn Will Begin Manufacturing In 2025

Taiwan Semiconductor stock surged 98% year-to-date, as it is the chief contract chipmaker for Big Techs, including Nvidia Corp NVDA and Apple Inc AAPL.

Taiwan Semiconductor is producing Proxima, the chip set to power Apple’s first in-house connectivity products in 2025. Apple plans to transition to in-house chips for Bluetooth and Wi-Fi connectivity starting in 2025.

Nvidia is considering producing the front-end process of Blackwell AI chips at Taiwan Semiconductor’s Arizona plant. Countries, including the U.S. and Europe, are consolidating their semiconductor base to reduce their dependence on China, whose semiconductor supply chain was hit by the 2020 pandemic outbreak, triggering a supply crisis for semiconductor chips for electronic gadgets and cars.

The International Data Corp (IDC) expects Taiwan Semiconductor to post a ~25% revenue increase in 2025, driven by advancements in artificial intelligence (AI) applications and crypto mining technologies.

IDC projects the global semiconductor industry will expand by 15%, with the international foundry market growing by 20% in 2025. The forecast also suggests Taiwan Semiconductor will capture a 67% share of the global foundry market in 2025, a 300 basis-point increase from the previous year.

Investors can gain exposure to companies that manufacture semiconductors through the VanEck Semiconductor ETF SMH and the iShares Semiconductor ETF SOXX.

Price Action: TSM stock closed higher by 4.98% at $200.99 at Friday.

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