Taipei: Taiwan's industrial production in January experienced a notable rise, marking the 11th straight month of year-on-year growth, driven by strong global demand for emerging technologies. The Ministry of Economic Affairs (MOEA) reported that production increased by more than 5 percent compared to the previous year.
According to Focus Taiwan, data from the MOEA revealed that the industrial production index climbed 5.07 percent from the previous year to reach 96.31. The manufacturing sector, which constitutes over 90 percent of the total index, saw a year-on-year rise of 5.29 percent, reaching 96.4.
The electronic components industry recorded a 16.67 percent increase to 106.09 in January, with integrated circuit suppliers posting a 22.92 percent rise to 120.01, the highest ever for January. This growth was fueled by strong global demand for high-performance computing and artificial intelligence applications, which bolstered 12-inch wafer production and IC/wafer testing services, according to the ministry.
However, the flat panel-making sector experienced a 6.31 percent decline from the previous year, attributed to fewer working days during the Lunar New Year holiday, stated Huang Wei-jie, deputy head of the MOEA's Department of Statistics, during a news conference.
The computer and optoelectronics industry showed a 14.78 percent increase from a year earlier, reaching 131.65, the highest ever for January. Huang linked this growth to enhanced server production capacity, as manufacturers worked overtime during the Lunar New Year to meet demand.
Conversely, old-economy industries faced challenges, with the base metal industry experiencing a 14.82 percent year-on-year decline. The chemical material and fertilizer sector and the machinery equipment industry reported reductions of 7.08 percent and 2.10 percent, respectively. The auto and auto parts industry saw a 27.2 percent decline, primarily due to fewer working days.
Huang noted that although declines in old-economy industries moderated in January, it remains uncertain when growth will resume. Both the industrial and manufacturing production indexes reached their second-highest levels for January, continuing the positive growth trend for 11 consecutive months. This growth is anticipated to persist in February.
Looking forward, Huang projected the manufacturing production sub-index for February to fall between 92.46 and 96.46, indicating an annual increase of 18.6 percent to 23.7 percent. The manufacturing production index for the first two months is expected to range between 94.43 and 96.43, suggesting an annual increase of 11.4 percent to 13.8 percent.
Huang also mentioned that while factors such as trade tariffs and geopolitical conflicts have impacted global economic growth, the sustained demand for emerging technologies like AI applications and HPC, alongside robust demand for high-end semiconductor processes and servers, is likely to maintain steady growth in Taiwan's manufacturing production.