Taiwanese manufacturers remain cautious in December: TIER

Taipei, Jan. 30 (CNA) Business sentiment among Taiwanese manufacturers remained cautious in December 2025, despite the sector's composite indicator rising slightly to a 10-month high of 12.55, the Taiwan Institute of Economic Research (TIER) reported Friday.

Business sentiment edged up from 11.82 in November but remained within the yellow-blue light range of 10.5 to 13, signaling a generally cautious outlook in the sector, TIER said in a press release.

TIER said the modest improvement was largely driven by strong demand in artificial intelligence (AI) applications and high-tech sectors, including cloud computing services, which supported export orders and production.

Potentially lower U.S. tariffs also contributed to higher optimism, particularly among Taiwanese exporters of machinery, bicycles, hardware, and other products to the American market, it said.

Despite these positive factors, sentiment across the broader manufacturing sector remained mixed, with traditional industries and non-AI manufacturers showing slower growth.

TIER noted that while high-tech sectors posted double-digit growth in production and exports, many conventional industries have yet to recover, reflecting a persistent performance divide.

Looking ahead, TIER warned that global uncertainties, such as potential changes in U.S. trade policy, the challenge of turning AI innovation into real economic benefits and weak demand in China, could continue to temper overall sentiment.