Solid AI demand pushes up Taiwan's industrial production

Taipei, May 23 (CNA) With strong global demand for artificial intelligence applications on the rise, Taiwan's industrial production rose more than 20 percent from a year earlier in April, marking the 14th consecutive month of year-on-year growth, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed that the industrial production index rose by 22.31 percent year-on-year to a record high of 107.51 in April. The manufacturing sub-index -- which accounts for over 90 percent of total production -- also reached a new peak of 108.37, up 23.68 percent, marking the 14th consecutive month of year-on-year growth.

In the first four months of this year, the industrial production index rose 14.31 percent from a year earlier to 100.40 with the sub-index of the export-oriented manufacturing sector rising 15.22 percent to 100.92, the data showed.

Speaking with reporters, Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics, said that demand for AI still served as a driver for industrial production growth.

Moreover, clients of Taiwanese manufacturers rushed to place orders ahead of schedule, taking advantage of a 90-day pause on reciprocal tariffs announced by the Donald Trump administration on April 9, which gave an addition boost to Taiwan's production, Huang said.

In April, the local electronics component industry reported a 36.48 percent year-on-year increase in production, reflecting the growing popularity of AI applications and high-performance computing devices.

This surge drove semiconductor production up by 44.43 percent, reaching a new high of 133.63, according to the MOEA.

The ministry said that emerging technologies also boosted the computer and optoelectronics industry, whose production soared by 47.15 percent year-on-year to a record high of 176.06 in April.

Increased investment in equipment by semiconductor suppliers, along with rising demand for smartphone camera lenses and servers, further supported the industry's growth.

However, traditional industries experienced mixed demand in April, the MOEA said.

Base metal suppliers saw a 1.25 percent year-on-year increase in production, driven by higher demand for non-ferrous metals such as target materials. Meanwhile, machinery manufacturers reported a 4.75 percent rise, supported by sustained demand for equipment from semiconductor firms, according to the MOEA.

Huang said the base metal industry ended a four-month decline in April as non-iron metal used in semiconductor production increased.

On the other hand, the MOEA said the chemical and fertilizer industry experienced a 5.87 percent year-on-year decline in production in April due to intensifying price competition.

The auto and auto parts sector also faced challenges, with production falling by 2.15 percent year-on-year as a result of supply shortages in passenger car components, the MOEA added.

Looking ahead, Huang said global demand for emerging technologies is expected to remain strong, continuing to drive growth in Taiwan's semiconductor and server production. However, he warned that U.S. trade policies and ongoing geopolitical tensions may hinder global economic growth.

The MOEA forecast the sub-index of the manufacturing sector will range between 108.67 and 112.67 in May, up 11-15.1 percent.