Industrial production expanded 22.31 percent annually last month to 107.51, as increases in demand for high-performance computing (HPC) and artificial intelligence (AI) applications drove demand for locally-made chips and components.
The manufacturing production index climbed 23.68 percent year-on-year to 108.37, marking the 14th consecutive month of increase, the Ministry of Economic Affairs said.
In the first four months of this year, industrial and manufacturing production indices expanded 14.31 percent and 15.22 percent year-on-year, ministry data showed.
Photo: CNA
The growth momentum is to extend into this month, with the manufacturing production index expected to rise between 11 percent and 15.1 percent annually, Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) told a news conference in Taipei.
“Although the uncertainties posed by US tariffs are yet to fade away, demand for AI, HPC and cloud services applications remain strong,” he said.
That is despite the fact that front-loading demand, driven by the 90-day pause on the US’ “reciprocal” tariffs on Taiwanese goods, could start to ease this month, he said.
Production of electronic components grew 36.48 percent annually last month, as robust demand for AI and HPC devices continued to lift demand for 12-inch wafers, and chip packaging and testing, the ministry said.
The sub-index for semiconductor production soared 44.43 percent year-on-year, while the sub-index for flat panel and related component production fell 4.1 percent, ending two months of expansions given the decline in large-size panels used in TVs, the data showed.
The ministry attributed the decline to a slowdown in the front-loading effect starting as early as the fourth quarter and less impact from China’s economic stimulus package, Huang said.
Machinery equipment production grew 4.75 percent annually last month due to improving demand for advanced semiconductor components, printed circuit boards and related equipment, the data showed.
Production of base metals, primarily steel, rose 1.25 percent year-on-year thanks to increased demand for semiconductor components, the ministry said.
The production of chemical materials and fertilizers dropped 5.78 percent from the same period last year due to fierce price competition from global peers and sagging demand, it said.
Production of automotive products declined 2.15 percent annually given a shortage in components for certain models and less small sedan production, it said.
However, increases in auto component production due to front-loading demand has buoyed the decline, the ministry added.
“Manufacturers told us they expect automotive production to fall again this month, with a rebound unlikely in the short term,” Huang said.
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