The nation’s industrial production index rose 14.41 percent year-on-year to 117.36 last month, boosted by strong artificial intelligence (AI) demand and front-loading of new consumer electronics, the Ministry of Economic Affairs said yesterday.
The manufacturing production index, which comprises 94.63 percent of the industrial production index, increased 15.48 percent year-on-year to 118.22, the ministry said.
The increase in the manufacturing production index was the 18th consecutive month of growth and exceeded the ministry’s forecast of 112.19 to 116.19, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) told a news conference in Taipei.
Photo: Ritchie B. Tongo, EPA
In the first eight months of this year, the industrial and manufacturing production indices rose 16.59 percent and 17.75 percent from a year earlier respectively, the ministry said.
The manufacturing production index this month is expected to rise 15 to 19 percent year-on-year, supported by sustained demand for high-performance computing and front-loading of consumer electronics, Chen said.
The index this quarter is forecast to increase 16.8 to 18.2 percent from a year earlier and could hit a record high this year, Chen said.
However, growth momentum in the remaining months of this year depends on sustained demand for advanced semiconductors and AI-related products, and is related to weakness in traditional industries and global economic uncertainty, she said.
The latest report showed electronic component production last month rose 31.52 percent, supported by new smartphone launches in the US, South Korea and China, while semiconductor output expanded 35.86 percent on the back of AI-driven demand for wafer design and production, Chen said.
Production of computers, electronic goods and optical components grew 3.8 percent last month, supported by AI and cloud service demand, but growth slowed sharply from July, as server makers entered a product transition phase, she said.
Flat panel and related component output fell 1.58 percent, as declines in large TV panels continued to offset growth in medium and small-sized panels, she added.
The data also showed persistent weakness in traditional industries, as manufacturers remained affected by global geopolitical fluctuations, the ministry said.
Base metal production, mainly steel, fell 0.69 percent, while chemical materials and fertilizers dropped 1.71 percent amid oversupply and low-price competition from China, Chen said.
Base metal production, including plumbing hardware and screw suppliers, was hit by US tariffs as clients turned conservative, while manufacturers said they have yet to see the effect of China’s new policy requiring domestic steel producers to cut supply this month, she said.
Vehicle output dropped 11.95 percent, as demand for auto components, particularly in the US and European markets, remained weak, she said.
Machinery equipment production fell 1.24 percent, ending 10 straight months of growth, due to a higher base last year and weak order momentum for makers, including machine tool suppliers, amid US tariff uncertainties, Chen said.
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