Thu, Apr 24, 2025 page9

• Power consumption shows strong industry: institute

  HIGH VOLTAGE: Electricity demand from manufacturing rose 1.69 percent and 0.37 percent from the service sector for 1.49 percent overall, indicating a strong economy

  • By Chen Cheng-hui / Staff reporter
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  Taiwan’s economic activity last month continued to gain support from inventory replenishment demand and rush orders ahead of the US government’s new tariffs, an electricity consumption survey by the Taiwan Research Institute (台灣綜合研究院) showed yesterday.

  The Electricity Prosperity Index (EPI) compiled by the New Taipei City-based institute rose 0.15 percent last month from a year earlier, with overall electricity consumption signaling a booming “yellow-red” light for the 11th straight month, the institute said in a statement.

  Since US President Donald Trump took office in January, he has announced a number of tariffs, including “reciprocal” tariffs on most trading partners, which have prompted global companies to replenish inventory and accelerate shipments before the tariffs officially take effect, the institute said.

  

  A woman stands in front of electricity meters in an apartment building in Taipei on March 28.

  Photo: CNA

  “Taiwan’s semiconductor and electronics industries continue to benefit from the booming artificial intelligence [AI] development, which coupled with a surge in rush orders since early March, has driven production lines to operate at full capacity and supported the nation’s economic growth,” it said.

  As a result, Taiwan’s economy likely expanded 3 percent year-on-year last month and 3.1 percent in the first quarter, the institute said.

  The institute uses the EPI to gauge the health of the nation’s manufacturing and service sectors.

  Last month, use of high-voltage power increased 1.49 percent year-on-year, with demand from the manufacturing sector rising 1.69 percent, while service sector demand grew 0.37 percent, it said.

  Power consumption by semiconductor firms last month rose 9.46 percent from a year earlier on strong demand for AI and high-performance computing applications, while electricity consumption by suppliers of computers, electronic goods and optical products grew 10.87 percent, as the global AI server market is thriving and looking to expand further going forward, the institute said.

  However, chemical material producers saw power consumption decline 3.22 percent annually last month due to rising competition from foreign peers and global overcapacity, it said.

  Suppliers of steel products were also affected by the US tariffs, as well as pricing competition from Chinese and Southeast Asian rivals, with their electricity use declining 8 percent last month compared with the same period last year, it added.

  Overall, the arrival of recent rush orders highlights not only Taiwan’s strategic role in the global technology supply chain, but also the risks brought about by the uncertainty of the US tariff policy, which warrants further observation, the institute said.
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