Taipei, April 23 (CNA) Taiwan’s industrial production rose more than 13 percent from a year earlier in March, marking the 13th consecutive month of year-on-year growth in the ongoing artificial intelligence boom, the Ministry of Economic Affairs (MOEA) said Wednesday.
Data compiled by the MOEA showed the country reported its highest ever March industrial production index, which stood at 106.10, rising 13.65 percent from a year earlier, while the sub-index for the manufacturing sector, which accounts for more than 90 percent of total production, rose 14.71 percent to 106.89, also representing the 13th straight month of growth.
In the first three months of this year, Taiwan’s industrial production index rose 11.95 percent from a year earlier to 98.30 with the sub-index for the manufacturing sector up 12.79 percent at 98.77.
Speaking with reporters, Huang Wei-jie (黃偉傑), deputy head of the MOEA’s Department of Statistics, said the local tech sector continued to benefit from the growing popularity of emerging technologies such as AI applications, high performance computing (HPC) devices and cloud services in March.
Some Taiwanese firms reported clients rushed to place orders ahead of schedule to avoid the impact of U.S. President Donald Trump’s tariff threats, but AI development still served as the major driver to production growth in the month, Huang said.
Production posted by the electronic components industry rose 25.07 percent from a year earlier as solid AI and HPC demand prompted clients in businesses such as pure play wafer foundry, IC design, IC packaging and testing and motherboard firms to build up inventories in the month, the MOEA said.
In March, the computer and optoelectronics industry saw production rise 21.22 percent from a year earlier, with an increase in the shipment of servers and other communications equipment as well as mobile camera lenses and semiconductor equipment testing devices playing a big role due to strong demand for AI applications and cloud services, the MOEA added.
However, old economy industries generally suffered a production decline in March on escalating price competition, a supply glut in global markets and clients’ caution over their business outlook, Huang said.
The base metal, chemical material and fertilizer, auto and auto part industries recorded a 4.78 percent, 3.94 percent and 10.82 percent year-on-year decline in production, respectively, according to the MOEA.
The double-digit fall in the auto and auto part industry reflected a shortage of components and production line adjustments by some carmakers, the MOEA said.
Bucking the downturn in the old economy sector, the machinery industry saw production grow 7.57 percent from a year earlier as shipments increased at a time when semiconductor suppliers were keen to expand advanced technology capacity to meet strong demand in the global market, the MOEA added.
Looking ahead, the current booming AI era is expected to give an additional boost to advanced semiconductors and high-tech servers, and continue to push up Taiwan’s industrial production, the ministry said.
However, the MOEA warned that U.S. trade policies and geopolitical unease will keep creating uncertainties for the global economy down the road.
The ministry forecast that the sub-index on production in the local manufacturing sector for April will range from 100.24 to 104.24, up 14.4-19.0 percent from a year earlier.
