Industrial production last month expanded 12.3 percent year-on-year, driven by strong demand for electronic components used in high-performance computing and artificial intelligence (AI), the Ministry of Economic Affairs said yesterday.
The industrial production index printed 95.5 last month and is likely to tick higher this month, even though a number of companies are forecasting a decline in output, Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) said.
“Local firms would benefit further from the upcoming releases of next-generation technology gadgets and aggressive spending by US technology giants on AI development and applications,” Huang said.
Photo: CNA
Taiwan is home to the world’s major suppliers of advanced chips, AI servers, storage, memory and other equipment used in cloud data centers, smartphones, notebook computers, wearable gadgets and vehicles.
Apple Inc is to launch a new iPhone series next month, ramping up business for local firms in its supply chain.
However, the uptrend could take a hit from uncertainties such as US monetary policy, the US-China technology dispute and geopolitical tensions, Huang said.
Manufacturing output, which accounted for more than 95 percent of industrial production, improved 12.97 percent as most sectors reported improved business, a report showed.
Local firms involved in sales of computer, electronic and optical products experienced the most rapid growth of 32.21 percent, thanks to insatiable demand from cloud-based data centers and global smartphone brands, it said.
Chip testers, camera lens suppliers and semiconductor equipment vendors were also part of the windfall, it said.
Makers of electronic components — including chips, printed circuit boards and flat panels — posted 20.12 percent growth on the back of inventory demand ahead of new product launches, the report said.
Production at machinery equipment makers increased 2.64 percent year-on-year as local chipmakers increased capital expenditures and enlarged their capacity to meet greater demand, it said.
The output of chemical products grew 3.95 percent, as customers rebuilt inventory amid a global economic recovery, it added.
Base metal products and auto parts ran counter to the recovery by shrinking 2.88 percent and 8.21 percent year-on-year respectively, Huang said, adding that bad weather last month contributed to the poor showing.
Restocking demand for steel was soft as competition from cheap steel products from abroad posed a challenge, the ministry said.
Looking forward, 10.1 percent of firms expect industrial output to climb this month, while 15.5 percent forecast a decline and the remaining 74.4 percent said that business would remain steady, the report showed.
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