Industrial production hits new high in June on strong AI demand

Taipei, July 25 (CNA) Taiwan's industrial production hit a new high in June as robust global demand for AI continued to support the country's tech sector, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed the industrial production index rose 22.95 percent from a year earlier to 139.44 in June, marking the 28th consecutive month of year-on-year growth.

The subindex for the manufacturing sector, which accounts for more than 90 percent of Taiwan's total industrial production, rose 24.34 percent from a year earlier to a high of 142.00 in June, also marking the 28th straight month of year-on-year growth, the data indicated.

In the first six months of this year, Taiwan's industrial production index rose 19.82 percent from a year earlier to 128.18, with the subindex of the manufacturing sector rising 21.24 percent to 130.55, the MOEA said.

The MOEA said AI, high-performance computing devices and cloud-based services continued to bolster Taiwan's ICT industry in June. However, some traditional industries appeared relatively weak amid escalating competition and a slow recovery, the ministry said.

In June, production generated by the electronics component industry rose 30.37 percent from a year earlier to hit a new high. Semiconductor firms in the industry enjoyed a 34.17 percent increase in production during the current AI boom, the data showed.

The computer and optoelectronics industry also saw robust year-on-year growth of 45.05 percent in production as AI-driven demand boosted production of servers, switches and semiconductor inspection equipment.

However, production in the chemical and fertilizer industry fell 11.66 percent from a year earlier in June amid buyers' caution toward the market outlook, while the auto and auto part industry also reported a 1.72 percent decline on inventory adjustments, the MOEA said.

Against the downturn, the machinery industry reported a 17.24 percent year-on-year increase in June as semiconductor suppliers continued buying equipment for expansion, the MOEA added.

Chen Yu-fang (陳玉芳), deputy head of the MOEA's Department of Statistics, said momentum is expected to continue in the second half of this year on strong AI demand as well as the debut of new consumer electronics products by international brands.

Chen said that the ministry expected Taiwan's industrial production to grow at a double-digit pace for the entire 2026.

The MOEA has forecast that production in the manufacturing sector will grow 22-25.5 percent from a year earlier in July.