Taipei:Taiwan's industrial production reached a new high in August, with the index climbing more than 23 percent compared to the same period last year, spurred by strong global demand for artificial intelligence (AI) applications, as announced by the Ministry of Economic Affairs (MOEA).
According to Focus Taiwan, the MOEA's data shows that the industrial production index increased by 23.47 percent year-on-year to 145.97, surpassing the previous record of 143.32 in July. The manufacturing sector, which makes up over 90 percent of Taiwan's total production, saw its subindex rise 24.61 percent to 148.42.
August marked the 30th consecutive month of year-on-year growth for both indexes. For the first eight months of the year, the industrial production index grew 20.80 percent to 132.24, with the manufacturing subindex up 22.14 percent to 134.60.
The electronics component industry experienced a 21.68 percent production rise in August, fueled by increased demand for high-performance computing devices and AI-related applications. Key contributors included Taiwanese 12-inch pure play foundry operators, DRAM suppliers, IC assembly and testing firms, and IC designers. Within this industry, integrated circuit firms saw production increase by 24.24 percent.
The computer and optoelectronics industry posted an impressive 95.72 percent year-on-year production increase in August, driven by AI applications and cloud services boosting demand for AI servers, switches, semiconductor inspection equipment, and automation equipment.
The old economy sector showed mixed results, with the machinery industry witnessing an 18.65 percent production rise due to semiconductor suppliers expanding capacity to meet AI demand. However, the base metal industry saw a slight 0.36 percent decline, and the chemical material and fertilizer industry experienced a 5.81 percent drop due to weak demand and production cuts.
Chen Yu-fang, deputy head of the MOEA's Department of Statistics, noted gradual improvements in the old economy sector since March, as AI development created spill-over effects that benefited certain industries.
Looking forward, the MOEA expects Taiwan's exports to continue benefiting from the AI boom despite challenges from global trade policies and geopolitical tensions. The manufacturing sector's subindex is projected to range between 146.03 and 150.03 in September, reflecting a 22.5-25.8 percent increase from the previous year.