Taiwan's Industrial Surge Fueled by Global AI Demand
Taiwan's industrial production soared by over 20% year-on-year, driven by robust global demand for AI applications. Marking 14 months of growth, significant gains were seen in electronics and machinery. However, traditional sectors showed mixed results, and geopolitical tensions pose a potential threat to future expansion.
- Country:
- Taiwan
Taiwan's industrial production achieved a significant milestone by rising over 20% compared to the same month last year, marking the 14th consecutive month of growth, as reported by Taiwan's Ministry of Economic Affairs (MOEA). This remarkable increase is largely attributed to the strong global demand for artificial intelligence applications, according to Focus Taiwan.
The Deputy Head of MOEA's Department of Statistics, Huang Wei-jie, emphasized that the sustained demand for AI continues to drive industrial production growth. He noted that the momentum was further bolstered by Taiwanese manufacturers keen to place orders before a scheduled pause on reciprocal tariffs announced by the Donald Trump administration on April 9.
Data shows that industrial production rose by 14.31% during the first four months of 2025, reaching an index level of 100.40 compared to the previous year. Overall, April's industrial production surged by 22.31% year-on-year, setting a new high of 107.51. The local electronics component industry reported a noteworthy 36.48% growth, propelled by the increasing popularity of AI applications and high-performance computing devices.
Conversely, MOEA reported varied demand in traditional industries. The base metal sector saw a 1.25% increase owing to heightened demand for nonferrous metals, while machinery manufacturers experienced a 4.75% rise supported by semiconductor firms' equipment needs. The base metal industry also reversed a four-month decline with increased non-iron metal production for semiconductors, noted Huang Wei-jie.
The chemical and fertilizer industries faced a 5.87% year-on-year decline due to rising price competition, while the auto sector saw a 2.15% decrease amid a shortage of passenger car components. Moving forward, global demand for emerging technologies is expected to support Taiwan's semiconductor and server production, though U.S. trade policies and geopolitical tensions could challenge overall global economic growth.
(With inputs from agencies.)
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