Industrial output rises 11.78%

Market trends: Demand for artificial intelligence and computing tech drove the growth, while other sectors, such as chemical products, slipped due to weak demand

The industrial production index rose 11.78 percent year-on-year to 136.65 last month, as strong demand for artificial intelligence (AI) and high-performance computing applications continued to boost output in the information technology and electronics sectors, the Ministry of Economic Affairs said yesterday.

The manufacturing production index, which accounts for 93.72 percent of overall industrial output, rose 12.68 percent year-on-year to 139.12, the 27th straight month of growth, exceeding the ministry’s forecast growth range of 8.4 percent to 11.6 percent.

The stronger-than-expected performance was driven by continued expansion of AI infrastructure, which boosted output of wafer foundry services, memory chips and electronic components, Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) said at a news conference in Taipei.

A robotic arm is pictured at an automation intelligence and robot trade show in Taipei in an undated photograph.

Last month, output of computer, electronics and optical products rose 36.62 percent year-on-year, driven by strong demand for servers, switches, semiconductor inspection equipment and other products used in cloud and data center applications, Chen said.

That was followed by a 12.17 percent increase in electronic component output amid strong demand for 12-inch wafers, DRAM chips, and IC packaging and testing services, she said.

Production of flat-panel displays fell 9.42 percent, reversing growth from the previous month, as front-loading demand for TVs ahead of major sporting events eased, Chen said.

In traditional industries, machinery output rose 10.68 percent year-on-year, the third consecutive month of growth, driven by strong investment in chipmaking and power transmission equipment, she said.

Base metal output rose 8.19 percent, supported by demand for materials used in the semiconductor industry, as well as China’s steel production cuts, she said.

Chemical materials output fell 12.92 percent due to weak demand and maintenance shutdowns at some production lines, while auto parts output rose 2.44 percent on rising production of electric vehicles and small gasoline-powered passenger cars, Chen said.

Traditional industries have shown steady growth since March, although the pace of recovery varies across industries, she said.

In the first five months of the year, the industrial production index grew 19.12 percent and the manufacturing production index rose 20.57 percent from the same period last year, ministry data showed.

The ministry expects the manufacturing production index to rise 19.9 to 23.4 percent year-on-year this month, grow 16.1 to 17.3 percent in the second quarter, and increase 20.5 to 21.1 percent in the first half of the year, Chen said.

The ministry is optimistic about manufacturing output in the second half, expecting it to outperform the first half as the peak season and expanding AI applications boost server and semiconductor production, she said.