Taiwan’s Industrial Production Surges 22.6% on AI Demand, Tariff Fears

Taiwan’s industrial production index jumped 22.6% year-on-year in June to
120.18, fuelled by strong demand for AI servers and pre-tariff shipment
front-loading, the Ministry of Economic Affairs reported.
The manufacturing index, which makes up over 94% of the total, rose
24%—its 15th straight month of growth—exceeding official forecasts. From
January to May, industrial and manufacturing output grew 16.39% and
17.43%, respectively.
Semiconductor production soared 38.1%, while electronic components rose
34.5% on robust demand for high-performance computing and AI. Computers
and optical components surged 89.3% year-on-year, driven by cloud and
server demand.
However, base metal output decreased by 6.3% due to maintenance
downtime, and car production declined by 16.3% due to plant shutdowns.
Chemical output declined 8.5% amid weak demand and Chinese price
competition.
Officials expect manufacturing to grow 23.6%–27.8% in July, pushing H1
industrial growth to 18.5%–19.2%—the strongest since 2010.

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