Industrial production rose 6.01 percent year-on-year last quarter, snapping six quarters of losses, due to robust demand for artificial intelligence (AI) devices, high-performance computing (HPC) applications and data centers, the Ministry of Economic Affairs said yesterday.
Manufacturing output, which accounted for nearly 95 percent of industrial production, climbed 6.16 percent year-on-year in the first quarter, the first pickup since the second quarter of 2022, the ministry said.
The manufacturing surge was mainly driven by the semiconductor industry, which jumped 13.46 percent annually last quarter amid robust demand for AI chips, it said.
Photo: Ritchie B. Tongo, EPA-EFE
Industrial production also measures the change in the value of output produced by utilities and mines, the ministry said.
The ministry expects the growth momentum in industrial production to carry over into this quarter and forecast that manufacturing output would expand between 11.1 percent and 16.4 percent annually this month.
“We believe manufacturing production would improve every quarter for the remainder of this year, primarily backed by the semiconductor and electronic components segments. AI-related applications will continue to be the growth drivers,” Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) said by telephone yesterday.
“However, the traditional sector is seeing a slow recovery, given lukewarm macroeconomic conditions. That could limit the growth of manufacturing output,” he said.
Asked about potential downside risks, Huang said the ministry would closely monitor geopolitical tensions, particularly in the Middle East, amid fears that conflict in the region could curb crude oil exports, leading to higher energy prices and undermine efforts by the US and other major economies to contain inflation.
“The return of high inflation would dampen consumer confidence. Consumers might balk at spending on new electronics again,” Huang said.
The production of electronic components, mainly semiconductors and displays, jumped 11.12 percent annually last quarter, thanks to strong demand for chips used in AI and HPC devices, the ministry said.
Chip designers, printed circuit board makers and DRAM suppliers also benefited from the AI boom, it said.
The production of computers and optical components increased 17.69 percent from a year ago, bolstered by higher demand for AI and cloud-based data centers, the ministry said.
Smartphone camera lenses demand also rose, thanks to specification upgrades.
The production of base metals, mostly steel, edged up 0.01 percent last quarter, ending 10 quarters of declines, but the recovery remained bumpy, given tepid demand and price competition, the ministry said.
Machinery output dropped 2.93 percent year-on-year last quarter as businesses were hesitant to invest in new equipment amid a slow global economic recovery, it said.
The production of automotive products rose 1.35 percent annually last quarter as increasing demand for electric vehicles offset weakness in sales of fossil fuel-powered cars and heavy trucks.
Petrochemicals saw production contract 3.28 percent year-on-year last quarter due to overcapacity and growing competition from overseas, the ministry said.
On Tuesday, US President Donald Trump weighed in on a pressing national issue: The rebranding of a restaurant chain. Last week, Cracker Barrel, a Tennessee company whose nationwide locations lean heavily on a cozy, old-timey aesthetic — “rocking chairs on the porch, a warm fire in the hearth, peg games on the table” — announced it was updating its logo. Uncle Herschel, the man who once appeared next to the letters with a barrel, was gone. It sparked ire on the right, with Donald Trump Jr leading a charge against the rebranding: “WTF is wrong with Cracker Barrel?!” Later, Trump Sr weighed
HEADWINDS: Upfront investment is unavoidable in the merger, but cost savings would materialize over time, TS Financial Holding Co president Welch Lin said TS Financial Holding Co (台新新光金控) said it would take about two years before the benefits of its merger with Shin Kong Financial Holding Co (新光金控) become evident, as the group prioritizes the consolidation of its major subsidiaries. “The group’s priority is to complete the consolidation of different subsidiaries,” Welch Lin (林維俊), president of the nation’s fourth-largest financial conglomerate by assets, told reporters during its first earnings briefing since the merger took effect on July 24. The asset management units are scheduled to merge in November, followed by life insurance in January next year and securities operations in April, Lin said. Banking integration,
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
Artificial intelligence (AI) chip designer Cambricon Technologies Corp (寒武紀科技) plunged almost 9 percent after warning investors about a doubling in its share price over just a month, a record gain that helped fuel a US$1 trillion Chinese market rally. Cambricon triggered the selloff with a Thursday filing in which it dispelled talk about nonexistent products in the pipeline, reminded investors it labors under US sanctions, and stressed the difficulties of ascending the technology ladder. The Shanghai-listed company’s stock dived by the most since April in early yesterday trading, while the market stood largely unchanged. The litany of warnings underscores growing scrutiny of
RSS