Taiwan… AI Boom Fuels 17.91% Rise in Industrial Output

Taiwan’s industrial production index rose 17.91% year-on-year in February to 92.44, driven by surging global demand for AI chips and servers, according to the Ministry of Economic Affairs.

The manufacturing production index, which makes up the bulk of industrial output, grew 18.95%, marking its 12th straight month of expansion. In the first two months of 2025, industrial and manufacturing indices rose 10.88% and 11.58%, respectively.

Deputy Director-General Huang Wei-jie said AI hardware remains the main growth engine, with Taiwan retaining the most advanced chip and server production despite overseas pressures. Semiconductor output jumped 21.74% in the first two months, while computers and optical components surged 30.42%.

Machinery and equipment production rose 11.32%, but base metals and chemicals declined amid oversupply and weak demand. Automotive production fell 11.62% due to parts shortages and increased imports.

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