Taiwan's manufacturing sector edges up in November amid AI boom

Taipei, Dec. 31 (CNA) Taiwan's manufacturing sector showed signs of recovery in November as explosive growth in AI and cloud computing products offset broader market sluggishness, a key monthly index indicated.

The composite index for the manufacturing sector rose by 1.70 points to reach 12.32 in November but remained in the "yellow-blue" range, signaling overall sluggishness, for a third consecutive month, the Taiwan Institute of Economic Research (TIER) reported Wednesday.

The electronic and optical sectors emerged as the primary growth drivers of the index, fueled by strong demand for AI-related hardware.

Both the electronic component and the computer and optical product sectors shifted from "green" lights, signaling stable growth, to "red" lights, signaling booming or overheating conditions, according to the TIER.

Export orders for electronic components surged by 47.9 percent year-on-year, while production growth for computer and optical products set new historical records.

In contrast, manufacturers in non-high-tech sectors still faced significant headwinds in November due to global overcapacity and a slow recovery in international markets, the TIER said.

Among the sectors continuing to flash "blue" lights, representing contraction, were the textile, chemical, and basic metals industries.

The TIER noted that while the proportion of sectors flashing a red light jumped from zero in October to 22.53 percent in November, the global manufacturing recovery remained fragile.