Taiwan industrial output rises for 16th straight month in June

Taipei, July 24 (CNA) Taiwan's industrial production rose 18.65 percent year-on-year in June, marking the 16th straight month of growth on the back of strong global demand for artificial intelligence applications, the Ministry of Economic Affairs (MOEA) said Wednesday.

The industrial production index rose to 111.48 in June and the manufacturing sub-index to 112.11 -- both record highs for the month -- with the latter, which accounts for over 90 percent of total output, jumping 20.03 percent year-on-year, MOEA data showed.

In the first half of 2025, Taiwan's industrial production index rose 16.69 percent year-on-year to 105.66. The manufacturing sub-index climbed 17.77 percent from a year earlier to 106.32.

Speaking to reporters, Huang Wei-jie (黃偉傑), head of the MOEA's Department of Statistics, said Taiwan continued to benefit from strong demand for AI development, despite uncertainties surrounding U.S. tariff policies.

Boosted by AI-related demand, production in the electronic components industry rose 22.38 percent year-on-year, with its index hitting a record 117.31 for June, the MOEA said. The integrated circuit segment also posted a June high of 129.28, up 22.80 percent, driven by increased 12-inch wafer output.

Driven by demand for AI and cloud services, the computer and optoelectronics industry saw production surge 81.95 percent, with its index reaching 251.56, the MOEA said. The increase was fueled by strong shipments of servers, mobile camera lenses, semiconductor equipment and industrial computers, the MOEA added.

However, Huang said growth in traditional industries remained uneven, with only the machinery sector posting a year-on-year increase in June -- up 6.30 percent -- as semiconductor makers continued expanding production capacity.

The base metal, chemical and fertilizer, and auto and auto parts industries all underperformed the broader manufacturing sector in June, with year-on-year declines of 6.15 percent, 1.94 percent and 3.38 percent, respectively, according to the MOEA.

While many manufacturers remained cautious about a possible reciprocal tariff from the United States as talks with Taipei continued, Huang said the sector is expected to receive an additional boost from booming AI demand in the second half of the year.

Huang forecast that the manufacturing sub-index will grow by 19.5 to 23.7 percent year-on-year in July, reaching between 114.18 and 118.18.