The industrial production index rose 14.5 percent year-on-year to 115.11 last month, as strong demand for artificial intelligence (AI) and high-performance computing technology continued to drive production momentum of information and electronic products, the Ministry of Economic Affairs said yesterday.
The manufacturing production index, which comprises 94.63 percent of the industrial production index, increased 15.38 percent to 116.03 last month, recording the 20th consecutive month of annual growth and meeting the ministry’s forecast of 114.22 to 118.22, it said.
In the first 10 months of this year, the industrial and manufacturing production indices rose 16.27 percent and 17.43 percent, respectively, from the same period last year, it said.
Photo: An Rong Xu, Bloomberg
The manufacturing production index this month is expected to rise 10.6 to 14.5 percent year-on-year, supported by robust demand for computers and electronic goods, especially AI servers, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) told a news conference in Taipei.
While geopolitical uncertainties and the US’ “reciprocal tariffs” could make manufacturers cautious about investing, strong demand for computers, electronic goods and optical components is expected to support growth in the final two months of the year, Chen said.
The full-year manufacturing production index could hit a new high and grow by 10 percent this year — surpassing the level of 100 in 2021 — if the index averages 81.6 this month and next month, which is likely, she said.
Last month, production of electronic components rose 21.66 percent, supported by new smartphone launches, while output of semiconductors grew 21.69 percent and that of computers, electronic goods and optical components surged 45.39 percent, driven by AI demand, Chen said.
Production of flat panels and related components rose 10.3 percent to record the second consecutive month of annual growth, driven by output of small panels, Chen said.
Whether this momentum would extend through the end of the year depends on demand from China and holiday sales in the US and European markets, she added.
Traditional industries continued to face pressures of US tariffs and China’s oversupply, with base metal production — primarily steel — falling 2.89 percent, production of chemical materials and fertilizers declining 0.47 percent and vehicle output dropping 4.72 percent from a year earlier, Chen said.
However, machinery equipment production grew 3.44 percent on continued demand for chipmaking equipment, but machine tool makers remained affected by tariffs, she said.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
RSS