Taipei:Taiwan's industrial production surged by over 19 percent year on year in September, spurred by the boom in artificial intelligence (AI), marking the 31st consecutive month of growth, the Ministry of Economic Affairs (MOEA) announced on Friday.

According to Focus Taiwan, the MOEA's data revealed that the industrial production index increased by 19.17 percent from the previous year to reach 140.76 in September. The manufacturing subindex, which accounts for more than 90 percent of total production, saw a rise of 20.21 percent, reaching 143.31.

In the third quarter, industrial production experienced a year-on-year increase of 21.95 percent, with the manufacturing subindex climbing 23.05 percent. For the first nine months of the year, industrial production grew by 20.53 percent, while the manufacturing subindex rose by 21.83 percent.

The MOEA noted that the export-oriented manufacturing sector continued to thrive due to strong global demand for AI applications, high-performance computing devices, and cloud services. The introduction of new consumer electronics by international brands further boosted Taiwan's information and electronics industries, also benefiting certain non-tech manufacturers.

In September, the electronics industry's production jumped 23.62 percent year on year, driven by sectors such as 12-inch wafer foundries, integrated circuit (IC) packaging and testing firms, memory chip suppliers, IC designers, and IC substrate makers. The computer and optoelectronics industry saw a 45.92 percent increase due to the rising demand for AI servers, switches, semiconductor inspection equipment, and automation equipment.

Production in the machinery industry climbed 26.02 percent year on year, aided by semiconductor suppliers installing equipment to expand capacity. Base metal production saw a modest rise of 1.39 percent due to a recovery in demand. However, the chemical material and fertilizer industry saw a decline of 4.29 percent year on year due to slower demand and reduced output during annual maintenance.

Additionally, production of autos and auto parts increased by 2.35 percent, driven by higher output of electric passenger cars and all-terrain vehicles. Looking forward, the MOEA expects the global AI boom and the upcoming year-end holiday shopping season to continue supporting Taiwan's industrial production. However, geopolitical tensions and trade policies of major economies might still pose uncertainties for the global economy.