TSMC: Estimates server and IoT growth this year, PC and smartphone decline
TSMC forecasts continued strong demand for AI and high-performance computing in 2025, while PC and smartphone markets are expected to decline. Server shipments are projected for low double-digit growth, IoT for high single-digit growth.
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- 📰 Published: April 16, 2026 at 21:36
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Central News Agency (CNA) - Hsinchu, April 16 - Semiconductor foundry leader TSMC stated that global trade conflicts and protectionism will continue to bring risks and uncertainties to the end demand for electronic equipment this year, with expected declines in computer and smartphone shipments, while server and Internet of Things (IoT) markets are anticipated to grow.
TSMC's 2025 annual report was released, in which TSMC anticipates continued strong demand for artificial intelligence (AI) in 2025, while other non-AI markets are expected to weaken.
TSMC pointed out that high-performance computing platforms include personal computers, tablets, game consoles, servers, and base stations. Benefiting from personal computer upgrades and strong commercial demand, new game console launches, and continued strong growth in AI servers and data centers, shipments of high-performance computing products increased by 9% in 2024.
TSMC expects personal computer shipments to decline this year. Driven by an intensifying AI arms race, server shipments are expected to show low double-digit growth this year.
In terms of smartphones, shipments grew by about 3% in 2024. TSMC anticipates that this year, affected by memory shortages and price increases, the smartphone market may experience a decline.
Regarding the Internet of Things (IoT), TSMC stated that IoT shipments grew by 11% in 2024 and are expected to continue their steady growth trend this year, showing high single-digit growth.
In the automotive market, TSMC noted a healthy recovery with a 3% increase in production in 2024. It anticipates that due to economic uncertainties and pre-procurement impacts, automotive production may remain flat or slightly decrease this year.
For consumer electronics, TSMC indicated a slight contraction in the overall market in 2024. While sporting events like the World Cup and Winter Olympics this year might stimulate demand for set-top boxes and digital TVs, structural headwinds persist, coupled with an unfavorable memory pricing environment, leading to a flat or slightly declining overall consumer electronics market.
TSMC pointed out that driven by major trends such as AI, 5G, 6G, digital transformation, and the increasing semiconductor content in most electronic devices, the global semiconductor market (excluding memory) is expected to have an average annual growth rate of approximately 10% by 2029. (Editor: Chang Liang-Chih) 2026-04-16.
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TSMC's 2025 annual report was released, in which TSMC anticipates continued strong demand for artificial intelligence (AI) in 2025, while other non-AI markets are expected to weaken.
TSMC pointed out that high-performance computing platforms include personal computers, tablets, game consoles, servers, and base stations. Benefiting from personal computer upgrades and strong commercial demand, new game console launches, and continued strong growth in AI servers and data centers, shipments of high-performance computing products increased by 9% in 2024.
TSMC expects personal computer shipments to decline this year. Driven by an intensifying AI arms race, server shipments are expected to show low double-digit growth this year.
In terms of smartphones, shipments grew by about 3% in 2024. TSMC anticipates that this year, affected by memory shortages and price increases, the smartphone market may experience a decline.
Regarding the Internet of Things (IoT), TSMC stated that IoT shipments grew by 11% in 2024 and are expected to continue their steady growth trend this year, showing high single-digit growth.
In the automotive market, TSMC noted a healthy recovery with a 3% increase in production in 2024. It anticipates that due to economic uncertainties and pre-procurement impacts, automotive production may remain flat or slightly decrease this year.
For consumer electronics, TSMC indicated a slight contraction in the overall market in 2024. While sporting events like the World Cup and Winter Olympics this year might stimulate demand for set-top boxes and digital TVs, structural headwinds persist, coupled with an unfavorable memory pricing environment, leading to a flat or slightly declining overall consumer electronics market.
TSMC pointed out that driven by major trends such as AI, 5G, 6G, digital transformation, and the increasing semiconductor content in most electronic devices, the global semiconductor market (excluding memory) is expected to have an average annual growth rate of approximately 10% by 2029. (Editor: Chang Liang-Chih) 2026-04-16.
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