The industrial production index expanded 8.85 percent annually to 100.6 last month as robust demand for artificial intelligence (AI) applications and high-performance computing (HPC) devices fueled demand for advanced chips and data centers, the Ministry of Economic Affairs said yesterday.
The index measures the change in the value of output produced by the local manufacturing, mining and utilities sectors, with the manufacturing output, the major pillar of industrial production, growing 9.32 percent year-on-year to 100.51 last month.
Industrial and manufacturing production registered an eighth consecutive month of annual growth last month.
Photo: Chiang Ying-ying, AP
During the first 10 months of this year, industrial production and manufacturing production grew 10.68 percent and 11.11 percent from the same period last year respectively.
“It looks like manufacturing production is on track to grow for the whole of this year, ending two consecutive years of decline,” Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) said by telephone yesterday. “The outlook for the first quarter of next year remains unclear. A major uncertainty is the US trade policies under [US president-elect] Donald Trump. We are closely monitoring how it will play out.”
This month, manufacturing production is expected to climb between 5.8 percent and 10.1 percent annually to between 98.08 and 102.08, the ministry forecast.
On a sequential basis, manufacturing production would shrink 2.4 percent in the worst-case scenario due to a disappointing recovery of the traditional sectors, which were affected by China’s economic slowdown and industrial overcapacity, Huang said.
Among the six major industries in the manufacturing sector, three posted an annual output expansion last month, with the electronic components industry reporting the largest increase of 16.47 percent, benefiting from rising demand for HPC and AI devices, which boosted demand for 12-inch wafers, chip design and chip testing and packaging services, the ministry said.
The production of computers and optical products last month rose 4.35 percent annually, thanks to sustained demand for AI applications and semiconductor inspection equipment, the ministry said.
Machinery equipment production expanded 11.06 percent last month, buoyed by robust equipment demand from semiconductor companies.
Demand for machine tools remained sluggish as slower global economic growth depressed firms’ investment in manufacturing equipment, it said.
The production of base metals contracted 3.52 percent last month due to sluggish steel demand worldwide and low-priced steel products from China, the ministry said.
The production of chemical materials and fertilizers dipped 5.01 percent last month as manufacturers cut production to cope with sagging demand. The decline was also a result of disruptions by typhoons last month, it added.
The production of automotive products plummeted 12.59 percent last month, attributable to component shortages and competition from global automakers, the ministry said.
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