The industrial production index rose 16.42 percent year-on-year to 119.31 last month, driven by strong demand for artificial intelligence (AI) and high-performance computing (HPC) applications that boosted output of information and communications technology and electronics products, the Ministry of Economic Affairs said yesterday.
The manufacturing production index, which comprises 94.63 percent of the industrial production index, increased 17.35 percent to 120.84 last month, recording the 21st consecutive month of annual growth and exceeding the ministry’s forecast of 113.9 to 117.9, it said.
In the first 11 months of this year, the industrial and manufacturing production indices rose 16.25 percent and 17.38 percent respectively from the same period last year, ministry data showed.
Photo: CNA
The manufacturing production index this month is expected to rise 13.1 to 16.8 percent year-on-year, supported by robust demand for electronic components and computers, and electronic products, especially AI servers, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) told a news conference in Taipei.
While production momentum for information and electronic products is expected to remain strong this month, traditional industries continue to face intense overseas competition and weak demand, Chen said.
The ministry forecast the manufacturing production index in the fourth quarter to rise 15.1 percent to 16.4 percent year-on-year to between 119.91 and 121.25, she said.
The index’s full-year growth could hit a new high, rising 17 percent to 17.3 percent to between 112.28 and 112.61, she added, dismissing speculation about an increase of up to 20 percent.
Last month, production of electronic components such as ICs, motherboards and memory products rose 17.55 percent, and production of computers, electronic goods and optical components surged 124.52 percent, driven by strong demand for AI and HPC applications, as well as cloud data services, Chen said.
Amid concerns that surging memory prices would weigh on computer production next year, Chen said output in the segment remained normal this month, but the ministry would closely monitor potential impacts.
Production of flat panels and related components fell 6.55 percent, ending two consecutive months of year-on-year growth, as demand from China and holiday sales in the US and Europe remained weak, she said.
Traditional industries continued to face pressures from US tariffs and oversupply in China, with base metal production — primarily steel — falling 10.79 percent, production of chemical materials and fertilizers declining 4.26 percent, and vehicle output dropping 14.22 percent from a year earlier, she said.
Machinery equipment production fell 4.26 percent, ending a 13-month streak of growth, due to a high comparison base last year, as demand for chipmaking equipment failed to offset weak machine tool output, which continues to be affected by tariffs, she said.
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