Taiwan’s industrial electricity consumption last month rose 1.12 percent year-on-year, fueled by surging demand from artificial intelligence (AI) applications and next-generation consumer electronics, the Taiwan Research Institute (台綜院) said yesterday.
The New Taipei City-based institute, which publishes the electricity prosperity index (EPI) to gauge the health of industrial sectors, reported that the index flashed “yellow-red,” indicating a thriving state despite mounting disparities across industries. The reading reflects robust activity in technology-related sectors, even as traditional industries face headwinds.
Taiwan’s semiconductor sector continued its remarkable growth, with electricity consumption for the industry climbing 9.53 percent year-on-year and reaching a record high, the institute said.
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The EPI’s electricity activity index for the sector has signaled strong demand with a red light for five consecutive months, underscoring the sustained expansion of the semiconductor industry.
Taiwan is home to the world’s largest supplier of advanced chips used in AI and high-performance computing, a position that continues to bolster industrial energy demand, the institute said.
Firms in the computer, electronics and optical products sector also recorded strong growth, with electricity consumption up 5.59 percent, it said, linking the rise to AI and cloud server deployment, as well as the launch of new consumer electronics products.
Apple Inc’s unveiling of its latest-generation iPhones, iPods and Apple Watch earlier this month contributed to higher business activity at local suppliers of camera lenses, casings, display panels, battery packs and other components, it added.
This increase occurred despite the recent implementation of US reciprocal tariffs, highlighting the resilience of Taiwan’s tech manufacturing ecosystem, the institute said.
Overall high-voltage electricity use across Taiwan edged up 0.6 percent from a year earlier, with the manufacturing sector up 0.31 percent and service providers up 1.41 percent, it said.
However, not all sectors experienced positive developments. Electricity consumption fell 9.41 percent at local steelmakers, dropped 16.37 percent at textile firms and declined 11.96 percent at machinery tool vendors.
Rising production costs due to Taiwan’s environmental policies and global shifts toward greener chemicals have placed additional pressure on chemical product manufacturers.
Moreover, China, previously a major importer of Taiwanese chemicals, has expanded its domestic production, reducing demand for imports from Taiwan.
The institute expects the ongoing AI boom to continue fueling growth in the semiconductor sector, helping to offset downturns in non-tech industries and supporting the overall economy.
At the same time, the institute said that Taiwan must carefully monitor global economic uncertainties, including potential US tariff threats, to mitigate downside risks to local industries.
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