Taipei: Taiwan's industrial production witnessed a significant growth of over 16 percent in November compared to the previous year, marking the 21st consecutive month of year-on-year expansion, as reported by the Ministry of Economic Affairs (MOEA) on Wednesday. This consistent growth is attributed to the strong global demand for AI applications.
According to Focus Taiwan, the data released by the MOEA indicated that the industrial production index increased by 16.42 percent year-on-year, reaching a November high of 119.31. The manufacturing sector, which constitutes more than 90 percent of the total production, saw a rise of 17.35 percent to 120.84, achieving its second-highest monthly value after May's 120.86.
In the first 11 months of the current year, the industrial production index climbed by 16.25 percent from the prior year to 110.43, with the manufacturing sector's subindex rising 17.38 percent to 111.28, as per the data.
Chen Yu-fang, the deputy head of the MOEA's Department of Statistics, stated that the persistent global demand for AI, high-performance computing devices, and cloud data services has significantly supported the local electronics and information/communications industries.
In November, the electronic components industry recorded a 17.55 percent year-on-year production increase, driven by an 18.17 percent surge in integrated circuit production amid the current AI era, the MOEA reported.
The computer and optoelectronics industry experienced a remarkable 124.52 percent production increase from the previous year in November, as AI and cloud services continued to boost shipments of servers and semiconductor inspection equipment, the MOEA noted.
However, Chen highlighted that major old economy industries faced challenges due to weakening demand, with many clients hesitant to place orders in November.
The base metal industry experienced a 10.79 percent year-on-year production decline last month due to weak steel demand, while the chemical material and fertilizer industry saw a 4.26 percent production decrease amidst increasing price competition, as reported by the MOEA.
In addition, the auto and auto parts industry reported a 14.22 percent year-on-year production fall, primarily due to inventory adjustments, and the machinery industry's production dropped by 4.26 percent due to a comparatively high base from the previous year, the MOEA added.
Chen mentioned that the weakness in the old economy sector might persist into December. Despite the global economy being affected by protectionism and geopolitical tensions, the MOEA suggested that emerging technologies could continue to support the local manufacturing sector.
The manufacturing sector's production could grow by 13.1-16.8 percent from the previous year, and the overall 2025 growth could reach approximately 17 percent, according to Chen.