AI boom pushes overtime to new high in Taiwan's key tech sectors

Taipei, June 13 (CNA) Overtime hours worked by employees in two of Taiwan's key AI-related manufacturing sectors reached record highs for April this year, underscoring the strong demand for semiconductor chips and related products amid the global artificial intelligence (AI) boom.

The electronic components manufacturing sector recorded an average of 29.6 overtime hours per worker in April, the highest figure for that month since records began 47 years ago, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said on Friday.

If calculated based on a typical five-day work week, it means workers worked the equivalent of an extra 1.5 hour each day.

Meanwhile, the computer, electronic, and optical products manufacturing sector recorded an average of 18.1 overtime hours worked per worker, also the highest April figure on record for that sector.

Overtime hours are widely viewed as an indicator of economic conditions, as companies typically require employees to work longer hours when orders increase and production capacity is stretched.

The figures suggest demand tied to AI development remains strong, continuing to drive growth in Taiwan's export-oriented technology industries.

According to the DGBAS, average overtime hours across the overall manufacturing sector reached 18.5 hours per worker in April, the highest level since August 2020.

At the end of April, Taiwan had 8.57 million employees, while average total working hours stood at 166.1 hours per worker that month, with average overtime hours reaching 9.4 hours for that month, the agency said.

Tan Wen-ling (譚文玲), deputy director of the DGBAS Census Department, said repeated increases in overtime hours in AI-related industries reflected robust demand and were consistent with the agency's earlier assessment that AI would continue to help drive Taiwan's economic growth.

The latest labor data came after the DGBAS significantly raised its economic growth forecast for Taiwan this year to 9.64 percent in late May.

Despite a high comparison base following 8.76 percent growth last year, the agency projected that in 2026 the economy would expand at its fastest pace in 16 years.

The DGBAS has said continued AI demand and investment in the sector have become key drivers of Taiwan's economic growth.