The industrial production index last month expanded 13.65 percent annually to 106.1, reaching a three-month high, while also increasing 11.95 percent annually in the first quarter, as demand for artificial intelligence (AI) and high-performance computing (HPC) applications remained robust, the Ministry of Economic Affairs said yesterday.
The manufacturing production
index, the major pillar of the industrial production index, last month climbed 14.71 percent year-on-year to 106.89, marking a 13th consecutive month of expansion, and grew 12.79 percent annually in the first quarter, the ministry said.
Photo: RITCHIE B. TONGO, EPA-EFE
The manufacturing production index next month is expected to rise between 14.4 percent and 19 percent annually, Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) told a news conference in Taipei.
“Although we’re still unsure how the US tariffs on Taiwanese goods will be in the future, the growth in the AI sector has yet to slow down. Our forecast for the industry is still highly positive,” Huang said.
Production of electronic components grew 20.39 percent in the first quarter from a year earlier, as the AI and HPC businesses remained strong, the ministry said.
Semiconductor production in the first quarter expanded 24.19 percent from a year earlier, thanks to steady demand for 12-inch wafers, chip designing, testing and packaging services, and flat panels, the ministry added.
The sharp increase in semiconductor production was partially related to front-loading demand by US clients ahead of US President Donald Trump’s tariffs on Taiwanese semiconductors, Huang said.
Production of computers, electronic goods and optical components in the first quarter surged 27.08 percent on the back of strong demand for AI applications, cloud services, servers, semiconductor equipment and phone lenses, the ministry said.
Machinery equipment production rose 10.59 percent in the first quarter, due to plans to expand production capacity by leading chip companies, which boosted the need for related equipment, it said.
In contrast, production of automotive products decreased 11.18 percent in the first quarter due to a decline in orders.
“When domestic vehicle inventory declines, the demand for related auto components also tends to decrease,” Huang said. “Competition from foreign automakers also played a significant role in the output decline.”
Production of base metals, including steel, sank 7.11 percent in the first quarter from the same period last year due to disruptions in the global steel recovery, with some manufacturers suspending operations to repair and maintain production equipment, the ministry said.
Output in chemical materials and fertilizers dropped 2.63 percent during the period, as some production lines were also temporarily shut down for maintenance or cut due to to weak demand, it said.
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