Taiwan’s economic activity in the first two months of this year continued to gain momentum, driven by the semiconductor and the information and communications technology (ICT) industries, an electricity consumption survey released by the Taiwan Research Institute (台灣綜合研究院) on Monday showed.
The New Taipei City-based institute in a report said its Electricity Prosperity Index (EPI) rose 1.31 percent in the first two months from a year earlier, with overall electricity consumption continuing to signal a booming “red” light.
The institute uses the EPI to gauge the health of the nation’s manufacturing and service sectors.
Photo: CNA
In the first two months, overall use of high-voltage power increased 0.88 percent year-on-year, with demand from the manufacturing sector rising 0.27 percent, while service sector demand grew 3.53 percent, it said.
Due to the continued surge in demand for artificial intelligence (AI), high-performance computing, data centers and cloud infrastructure, the semiconductor industry has performed exceptionally well, with its electricity consumption growing 8.93 percent in the first two months, the institute said.
Suppliers of computers, electronics and optical products saw a 10.36 percent increase in electricity consumption due to strong demand for AI applications, servers and memory chips, it said.
In comparison, traditional industries have been relatively weak in terms of electricity consumption, with chemical material producers recording a 0.52 percent annual decline in power consumption in the first two months due to global overcapacity, pricing competition from foreign peers and weak demand, the institute said.
Steel product suppliers saw their electricity use decline 7.93 percent compared with the same period last year, as the industry continued to consolidate, it said.
Electricity consumption also fell 2.17 percent at machinery equipment producers, affected by weak global demand and US tariffs, it added.
Overall, Taiwan’s economy continued to show strong momentum, supported by the global AI boom and robust semiconductor demand, the institute said, adding that the economy likely expanded 10.8 percent year-on-year during the period.
Tensions in the Middle East this month have pushed international oil prices up and exacerbated uncertainty in global supply chains, which could put pressure on Taiwan’s energy supply and industrial development through rising energy costs, fluctuations in transportation and raw material prices, and more conservative end-user demand, the institute said.
While AI-related demand remains strong in the short term, driving the semiconductor and ICT industries to maintain their expansionary momentum, the future economic outlook would require continued monitoring of how changing international circumstances affect supply chains and investment momentum, given heightened external risks, it said.
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