Taiwan's industrial production rises for 15th straight month in May

Taipei, June 24 (CNA) Taiwan's industrial output surged over 22 percent in May from a year earlier, buoyed by booming tech demand and a rush by foreign buyers to beat looming U.S. tariffs-- marking 15 consecutive months of growth, the Ministry of Economic Affairs (MOEA) said Tuesday.

Data compiled by the MOEA showed the local industrial production index rose 22.60 percent from a year earlier to hit a new high of 120.18, while the sub-index for the manufacturing sector, which accounts for more than 90 percent of the country's industrial production, rose 24.00 percent to smash the previous record and reach 121.41.

The May figures beat the MOEA's earlier estimate which said the sub-index of the manufacturing sector would range between 108.67 and 112.67, up 11-15.1 percent from a year earlier.

In the first five months of this year, Taiwan's industrial production index rose 16.39 percent from a year earlier to 104.60 with the sub-index for the manufacturing sector rising 17.43 percent to hit 105.28, the data indicated.

Speaking with reporters, Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics, said that export-oriented Taiwan continued to benefit from strong demand for artificial intelligence applications and cloud services, reporting another record high for industrial production in May.

A 90-day pause announced by the White House -- following the unveiling of sweeping reciprocal tariffs on April 2, including a 32 percent levy on Taiwanese goods -- prompted foreign buyers to accelerate stockpiling, further boosting Taiwan's outbound sales and production, Huang said.

However, momentum from such rush orders has shown signs of moderating, Huang added.

In May, the electronic components industry saw production rise 34.53 percent from a year earlier with the growing popularity of AI and high performance computing devices pushing up output of 12-inch wafer foundries, IC design, mother boards and IC packaging and testing services, the MOEA said.

Production in the computer and optoelectronics industry soared 89.28 percent from a year earlier in May, with the sub-index hitting a new high of 255.94, also on the back of the boom in emerging technologies, the MOEA said.

It added that growing investment in the semiconductor sector also drove up production of servers, semiconductor inspection equipment, and related components.

Old economy industries largely underperformed as they felt the pinch from the current unfavorable global trade climate, which caused foreign clients to remain cautious, according to the MOEA.

As demand for steel items stayed weak and many steel companies entered annual maintenance, production in the local base metal industry fell 6.30 percent from a year earlier In May, the MOEA said.

In addition, production in the auto and auto parts industry fell 16.31 percent from a year earlier in May amid fragile demand, while production in the chemical materials and fertilizer industry fell 8.51 percent due to escalating price competition and annual maintenance, the ministry added.

Bucking the downturn, the machinery industry posted a 6.21 percent year-on-year increase in production in May as the semiconductor industry intensified efforts to expand production capacity and upgrade technologies, boosting machinery demand, the MOEA added.

The MOEA estimated that the sub-index for the manufacturing sector will hit 115.40-119.40 in June, up 23.6-27.8 percent from a year earlier, as global demand for AI applications continues.

In the first half of this year, the sub-index is forecast to grow 18.5-19.2 percent from a year earlier, according to the MOEA.