《TAIPEI TIMES》September industrial production rises 19 percent

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A woman works at a factory in New Taipei’s Luzhou District on Aug. 31. Photo: CNA

STREAK OF 31 MONTHS:Consumer electronics launched by global brands boosted the information and electronic components industries, the economy ministry said

Staff writer with CNA

Industrial production rose more than 19 percent year-on-year last month, driven by the artificial intelligence （AI） boom, marking the 31st consecutive month of growth, the Ministry of Economic Affairs said yesterday.

The industrial production index rose 19.17 percent from a year earlier to 140.76 last month, while the manufacturing subindex, which accounts for more than 90 percent of total production, rose 20.21 percent to 143.31, ministry data showed.

In the third quarter, industrial production rose 21.95 percent year-on-year, with the manufacturing subindex up 23.05 percent, while in the first nine months of the year, industrial production grew 20.53 percent, with the manufacturing subindex up 21.83 percent, the data showed.

The export-oriented manufacturing sector continued to benefit from strong global demand for AI applications, high-performance computing devices and cloud services, the ministry said in a statement.

Launches of new consumer electronics by international brands also boosted Taiwan’s information and electronic components industries, while also lifting non-tech manufacturers, the statement said.

Last month, production in the electronic components industry rose 23.62 percent year-on-year, led by 12-inch wafer foundries, integrated circuit （IC） packaging and testing firms, memorychip suppliers, IC designers and IC substrate makers, it said.

Production in the computer, electronic and optical products industry soared 45.92 percent last month from a year earlier as AI development pushed up demand for AI servers, switches, semiconductor inspection equipment and solid-state drives, the statement said.

That marked the 39th straight month of growth, the ministry said.

With semiconductor suppliers installing equipment to expand capacity, production in the machinery industry rose 26.02 percent year-on-year, while base metal production rose 1.39 percent on a recovery in demand, it said.

Bucking the trend, production in the chemical material and fertilizer industry fell 4.29 percent year-on-year due to slower demand and reduced output during annual maintenance, it said.

Production of autos and auto parts rose 2.35 percent year-on-year, driven by higher output of electric passenger cars and all-terrain vehicles, it said.

Looking ahead, the global AI boom and year-end holiday shopping season are expected to continue supporting Taiwan’s industrial production for the rest of the year, although geopolitical tensions and major economies’ trade policies could continue to create uncertainty for the global economy, the ministry said.

Manufacturing production is expected to expand by 20.5 to 24.2 percent year-on-year this month, it added.

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