Industrial production expanded 16.7 percent year-on-year last year, driven by growth in semiconductor, electronics and computers production, the Ministry of Economic Affairs said yesterday.
The manufacturing production index — which accounts for 94.63 percent of the overall industrial production index — rose 17.87 percent year-on-year to 113.12 last year, exceeding the ministry’s forecast of between 112.28 and 112.61 and marking a record high for full year, ministry data showed.
That was supported by industrial production growth last month of 21.57 percent year-on-year, while manufacturing production increased for the 22nd consecutive month by 22.98 percent annually.
Photo: Sam Yeh, AFP
The manufacturing production index this month is expected to rise by between 35.6 and 39.7 percent year-on-year, supported by demand for high-performance computing and artificial intelligence (AI), as global investment in AI infrastructure continues, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) told a news conference in Taipei.
The manufacturing production index this year is expected to continue benefiting from demand for AI servers, high-performance computing applications and advanced chip packaging, Chen said.
While the first quarter is traditionally a slow season for the information and communications technology industry, that pattern could change this year, as AI-related demand is expected to offset seasonal weakness, she said.
Traditional industries last year faced oversupply pressure from China, but the effect has begun to ease, she said.
The US’ decision to lower tariffs on Taiwanese exports to 15 percent is also expected to boost the international competitiveness of Taiwan’s traditional manufacturers this year, as it would place them on a more level playing field with Japanese and South Korean rivals, she said.
Last month, production of electronic components such as ICs, motherboards and memory products rose 19.32 percent, while output of computers, electronic products and optical components surged 133.1 percent, driven by demand from AI and cloud computing applications that boosted investment in semiconductor and server production, Chen said.
Production of flat panels and related components rose 4 percent last month, ending a period of decline, as gains in small and medium-sized panels offset weakness in larger products, she said.
Traditional industries continued to face pressure from oversupply in China, with base metal production — primarily steel — falling 9.56 percent, production of chemical materials and fertilizers declining 3.42 percent, and vehicle output dropping 1.57 percent from a year earlier, she said.
Machinery equipment production rose 1.6 percent as demand for chipmaking equipment remained robust, she said.
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