Electricity use among the nation’s heavy users last month rebounded 3.35 percent from a year earlier, the fastest growth in 29 months, driven by suppliers of electronics used in artificial intelligence (AI) and other emerging technology applications, the Taiwan Research Institute (台灣綜合研究院) said yesterday.
The latest data indicated that the Electricity Prosperity Index, which the New Taipei City-based research body uses to gauge the health of the industrial and service sectors, stayed “green,” or in a state of steady growth.
The institute is looking at a GDP growth of 4.3 percent for last month, judging by the robust electricity use and export orders.
Photo: CNA
Export orders, which foretell actual shipments by one to three months, last month expanded 10.8 percent from a year earlier, thanks to strong demand for AI chips from US technology giant Nvidia Corp, the Ministry of Economic Affairs said on Monday.
The AI boom would further benefit Taiwan’s export-oriented economy, as local semiconductor firms command global leadership positions in the chipmaking process, the institute said, adding that end-market demand for some non-technology products has also showed signs of normalization.
AI BOOM
Last month’s overall power consumption by the industrial and commercial sectors grew 2.78 percent year-on-year — with a 1.46 percent uptick for the entire manufacturing industry and a 3.35 percent gain among high-voltage users, it found.
Taiwan’s semiconductor firms are by far the largest users of electricity. Makers of PCs and optical devices also reported evident business improvement alongside chipmakers, the institute found.
Local computer brands are keen to take advantage of the AI boom and exhibit AI PCs at the Computex Taipei trade show from June 4 to 7.
Electricity used by makers of machinery equipment and plastic products appeared to have bottomed out, while it floundered for vendors of chemical and rubber products after China terminated favorable trade terms under the Economic Cooperation Framework Agreement, the institute said.
Electricity used by chemical product makers declined 1 percent year-on-year despite a low comparison base last year, it added.
BETTER BUSINESS
Things could improve this quarter, helped by the arrival of the high season and lingering shipping disruptions in the Red Sea that have pushed up selling prices, the institute said.
Power consumed by service providers posted a 9.02 percent spike, as consumer spending held steady, it said.
These positive twists would lend further support to the nation’s economic recovery for the rest of this year, it added.
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