Taiwan reports highest April industrial production on AI

Taipei, May 26 (CNA) Riding the wave of global AI development, Taiwan on Tuesday reported the highest-ever level of industrial production in April, up over 14 percent from a year earlier, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed the April industrial production index rose 14.16 percent from a year earlier to 125.63, marking the 26th consecutive month of year-on-year growth.

The subindex for the manufacturing sector, which accounts for over 90 percent of total production, rose 15.13 percent from a year earlier to hit 127.81, a record level for April and the third highest ever after 137.03 in March and 135.61 in December 2025, the data indicated.

In the first four months of this year, the industrial production index rose 21.13 percent from a year earlier to 123.02 with the subindex for the manufacturing sector rising 22.71 percent to 125.30.

Taiwan's electronics sector continued to benefit from robust demand for AI, with high-performance computing devices and cloud data services driving overall industrial production higher, according to Chen Yu-fang (陳玉芳), deputy head of the MOEA's Department of Statistics.

The electronic components industry saw production rise 11.47 percent from a year earlier in April with pure-play foundries, memory chip makers, IC packaging and testing firms and IC designers boosted by AI applications, the MOEA said.

The computer and optoelectronics industry enjoyed an 85.40 percent year-on-year increase in production in April as strong demand for cloud-based infrastructure raised the production of servers, switches and semiconductor inspection equipment, the MOEA added.

However, some old economy industries trimmed production on weakening demand and escalating competition which offset production growth as a whole, Chen said, adding that China continued to expand production, affecting the chemical material and fertilizer industry, in particular.

The chemical materials and fertilizer industry posted a 10.01 percent year-on-year fall in production in April, while production in the auto and auto parts industry fell 2.93 percent on weaker demand, according to the MOEA.

However, select chemical suppliers such as copper-clad laminate firms bucked the downturn as their products were in demand for tech gadgets used in AI applications, Chen said.

Outperforming the old economy sector, the machinery industry received a boost from demand for expansion by semiconductor suppliers and posted a 9.69 percent year-on-year increase in April, while the base metal industry saw production rise 2.08 percent due to a relatively low comparison base a year earlier, the MOEA said.

Although geopolitical unease and unfavorable trade policies could affect global economic growth, the MOEA said, demand for AI infrastructure is expected to stay solid and support Taiwan's tech exports.

Looking ahead, the MOEA said the production subindex of the manufacturing sector is expected to hit 133.80-137.80 in May, up 8.4-11.6 percent from a year earlier, with the moderating growth reflecting a relatively high comparison base a year earlier.