Taiwan’s economic activity last month continued to gain support from semiconductor and electronics industries, an electricity consumption survey by the Taiwan Research Institute (台灣綜合研究院) showed yesterday.
The New Taipei City-based institute said in a report that the Electricity Prosperity Index (EPI) it compiled rose 1.27 percent last month from a year earlier, with overall electricity consumption signaling a “yellow-red” light for the third consecutive month.
“Electricity consumption continued to show disparities across industries last month,” the institute said. “As the artificial intelligence [AI] boom continues, demand for high-performance computing, cloud services, and information and communications technology is still thriving, bolstering the semiconductor and electronics industries.”
Photo: Chen Cheng-liang, Taipei Times
“However, traditional industries have seen a continuous decline in electricity demand and a sluggish outlook, affected by weak global end-market demand and the impact of US tariffs,” it said.
Taiwan’s economy continues to show strong momentum, driven by the steady growth of electricity consumption in the semiconductor and electronics industries, and strong export orders, the institute said.
As a result, the economy likely expanded 4.1 percent year-on-year last month and 3.8 percent in the third quarter, it said.
The institute uses the EPI to gauge the health of the nation’s manufacturing and service sectors.
Last month, overall use of high-voltage power increased 2.11 percent year-on-year, with demand from the manufacturing sector rising 1.97 percent, while service sector demand grew 2.25 percent, it said.
Power consumption by semiconductor firms last month rose 8.47 percent from a year earlier, with the EPI’s electricity activity index for the industry showing a booming “red” light for the sixth straight month, the institute said.
Suppliers of computers, electronics and optical products saw an 8.04 percent increase in electricity consumption, along with a “red” light, it said.
However, the electricity demand in the traditional industries continues a downward trend, as non-tech product suppliers are still facing relatively weak momentum, while the challenges of structural transformation persist, it said.
Chemical material producers recorded a 3.59 percent annual decline in power consumption last month due to weak market demand, pricing competition from foreign peers and global overcapacity, the institute said.
Suppliers of steel products were affected by the US tariffs and weak Chinese demand, with their electricity use declining 6.35 percent compared with the same period last year, it said.
Electricity consumption also fell 12.31 percent at textile firms and was down 5.38 percent at machinery equipment producers, it added.
For this quarter, the arrival of the traditional peak season and inventory pileup in supply chains, coupled with the still-strong demand for AI, are expected to continue supporting the growth of the semiconductor and electronics industries, the institute said.
However, the challenges of transformation and upgrading of traditional industries warrant further attention to ensure the nation’s long-term economic growth, it said.
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