Taiwan's industrial production grows for 21st straight month on AI demand

Taipei, Dec. 24 (CNA) Taiwan's industrial production grew over 16 percent from a year earlier in November, the 21st consecutive month of year-on-year growth on solid global demand for AI applications, the Ministry of Economic Affairs (MOEA) said Wednesday.

Data released by the MOEA showed the industrial production index rose 16.42 percent from a year earlier to hit a November high of 119.31, while the subindex for the manufacturing sector, which represents over 90 percent of total production, rose 17.35 percent to 120.84, the second monthly high after May's 120.86.

In the first 11 months of this year, the industrial production index rose 16.25 percent from a year earlier to 110.43, with the subindex for the manufacturing sector up 17.38 percent at 111.28, the data indicated.

Chen Yu-fang (陳玉芳), deputy head of the MOEA's Department of Statistics, said global demand for AI, high performance computing devices and cloud data services stayed strong, bolstering the local electronics and information/communications industry.

In November, the electronic components industry posted a 17.55 percent year-on-year increase in production as integrated circuit production soared 18.17 percent boosted by the current AI era, the MOEA said.

The computer and optoelectronics industry saw production jump 124.52 percent from a year earlier in November as AI and cloud services continued to push up shipments of servers and semiconductor inspection equipment, the MOEA added.

However, Chen said, major old economy industries continued to feel the pinch from weakening demand at a time when many clients appeared reluctant to place orders in November.

The base metal industry suffered a 10.79 percent year-on-year decline in production last month on weak steel demand, and the chemical material and fertilizer industry saw its production fall 4.26 percent on increasing price competition, the MOEA said.

Also in November, the auto/auto parts industry reported a 14.22 percent year-on-year fall in production largely amid inventory adjustments, while machinery industry production fell 4.26 percent on a relatively high comparison base a year earlier, the MOEA added.

The weakness in the old economy sector could continue in December, Chen said.

While the global economy remains haunted by protectionism and geopolitical unease, the MOEA said, emerging technologies could continue to lend support to the local manufacturing sector.

Production in the manufacturing sector could rise 13.1-16.8 percent from a year earlier, while growth for all of 2025 could hit about 17 percent, Chen said.