Taiwan’s industrial production grew 5.07% year-on-year in January, driven by strong demand for AI and high-performance computing components, the Ministry of Economic Affairs reported. Manufacturing output, which makes up 95.29% of total industrial production, rose 5.29%, marking its 11th consecutive month of growth.
Electronic components output surged 16.67%, while IC production hit a record high with 22.92% growth, fueled by expanding 12-inch wafer foundry production and demand from U.S. tech firms. The computer, electronics, and optical products index also rose 14.78%, as AI server suppliers operated through the Lunar New Year.
However, non-tech sectors faced declines due to fewer working days, overseas competition, and production maintenance, with basic metals, chemicals, machinery, and auto parts seeing 2.1% to 27.2% drops.
AI-driven demand is expected to sustain growth, with February’s manufacturing production index forecast to rise 18.6% to 23.7%, potentially mitigating seasonal first-quarter slowdowns.
