Taiwan’s manufacturing indicator rose 2.77 points to 14.87 in December, shifting from a sluggish “yellow-blue” to a stable “green,” the Taiwan Institute of Economic Research (TIER) reported.
The rebound was driven by strong demand for AI and high-performance computing, leading to a 20%+ surge in export orders and production and a 30%+ rise in imports. The electronics sector saw growth in 12-inch wafer foundries, IC packaging, and motherboards, while electronic chemical materials orders also increased. However, excess overseas production led to price competition in petrochemicals.
Despite the recovery, TIER warned of uncertainties, citing US trade tensions and potential new tariffs on the EU. Rising import costs could also fuel inflation as businesses pass them on to consumers.
