The nation’s manufacturing sector is expected to see production value expand by 6.48 percent year-on-year to NT$25.9 trillion (US$798.2 billion) next year, driven by strong demand for artificial intelligence (AI) applications including drones and robots, the Industrial Technology Research Institute (ITRI, 工研院) said yesterday.
“The new wave of the AI boom is not only boosting demand for edge devices such as smartphones and AI PCs, but it is also stimulating new demand for diverse applications beyond servers,” Jeff Lin (林昭憲), director-general of the ITRI’s Industry, Science and Technology International Strategy Center, said at a media briefing in Taipei.
“Except semiconductors, we are seeing a growing trend that US and European vendors are turning to Taiwanese suppliers to source electronics like drones and robots,” Lin said.
Photo: Amy Yang, Taipei Times
Within the sector, the information technology (IT) industry is to see production value grow 10.33 percent next year, largely fueled by soaring demand for AI chips, the institute said.
The semiconductor industry’s production value is projected to increase 16.5 percent to NT$16.5 trillion next year, hitting a record high, it said.
The electronic components industry is expected to benefit from rising demand for high-end components used in servers and low-Earth-orbit devices, boosting production value by 7.5 percent to NT$2.4 trillion, the institute said.
In view of mounting pressure from US customers and Washington’s call for “made in America,” local component suppliers might prioritize production in the US, rather than in Southeast Asia, it said.
As global steel demand is expected to recover next year, the metal and machinery industry is to register a yearly increase of 3.54 percent in production value next year, the institute said.
This industry’s growth is also attributable to rising demand from semiconductor, aerospace and energy companies, it added.
The chemical industry’s production value is estimated to rise 2.42 percent next year on the back of recovering crude oil demand, and the livelihood sector — including the textile industry — is to grow 3.53 percent in production value, the ITRI said.
Consumers tend to spend more amid easing global inflation and lower interest rates, creating a favorable sentiment for local textile makers next year, it said.
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