The industrial production index expanded 28.51 percent year-on-year in January to 124.51, driven by strong demand for artificial intelligence (AI) and high-performance computing applications, as well as front-loading ahead of the Lunar New Year holiday, the Ministry of Economic Affairs said yesterday.
The manufacturing production index — which accounts for 94.57 percent of the overall industrial production index — rose 30.05 percent year-on-year to 126.36 in January, the 23rd consecutive month of annual growth and the second-highest level for a single month, ministry data showed.
However, the figure fell short of the ministry’s forecast of 130.69 to 134.69, as differences in product portfolios in electronic components led to lower-than-expected shipments, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) told a news conference in Taipei.
Photo: CNA
Meanwhile, some computer, electronic and optical product makers, mainly server suppliers, shipped part of their goods in the previous month as requested by customers, resulting in a lower January figure, she said.
The manufacturing production index this month is expected to rise 9.7 percent to 14 percent year-on-year, as ongoing capital expenditures by major cloud service providers on AI infrastructure continue to support production of high-tech products, Chen said.
Industrial production in the first two months of this year could grow 20.1 percent to 22.2 percent year-on-year to between 114.31 and 116.31, which would be the highest on record for the period, she said.
However, the effects of conflicts in the Middle East warrant closer attention, she added.
In January, production of electronic components such as ICs, motherboards and memory products rose 25.21 percent year-on-year, and the output of computers, electronic and optical products surged 139.4 percent, while the production of flat-panel displays and related components fell 3 percent, ministry data showed.
Excluding electronic components and computers, electronic and optical products, the manufacturing production index for traditional industries in January would still rise about 3 percent year-on-year, indicating the sector is gradually recovering from earlier sluggish performance, Chen said.
Base metal production — mainly steel — increased 4.88 percent year-on-year on front-loading ahead of the Lunar New Year, while output of chemical materials and fertilizers rose 5.69 percent, supported by demand from semiconductor production, she said.
Vehicle production rose 14.66 percent from a year earlier, driven by new model launches and a reduction in commodity taxes on automobiles, and machinery equipment production rose 22.29 percent as demand for chipmaking equipment remained robust, ministry data showed.
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