The value of Taiwan's semiconductor output was expected to grow 22 percent to more than $164 billion this year, a top executive from chipmaking giant TSMC said Thursday, driven by AI technology and stronger economic growth.

Taiwan is a global power in semiconductors, which have become indispensable in an array of industries, from electronics to wind turbines, and even missiles.

TSMC, or Taiwan Semiconductor Manufacturing Company, controls more than half of the world's output of chips and counts Apple and Nvidia among its clients.

Speaking at an industry event in Taiwan, TSMC senior vice president Cliff Hou said the island's semiconductor output was expected to reach NT$5.3 trillion ($164.2 billion) in 2024, up 22 percent on last year.

The increase was "driven by advancements in AI and gradual economic recovery", said Hou, who is also the chairman of the Taiwan Semiconductor Industry Association.

"We should accelerate research and development to ensure our standing as an indispensable member of the global semiconductor supply chain," Hou said, according to Bloomberg news agency.

Hou's remarks, covered by local media, came after Donald Trump's victory in the US presidential election. Trump has accused Taiwan of stealing the US chip industry, raising fears the sector could be hit with tariffs.

TSMC is at the forefront of a generative AI revolution, churning out the world's most advanced microchips needed to power products made by Silicon Valley.

Surging demand for AI was having a knock-on effect across the entire semiconductor supply chain in Taiwan, Wayne Lin, executive vice president at Witology Markettrend Research Institute, told AFP.

"This expansion contributes to Taiwan's projected output, along with the traditional peak season for mobile communications toward the year-end," Lin said.