The industrial sector in Taiwan witnessed an annual growth of 18.65% in June, marking the 16th consecutive month of expansion, despite a 6.86% contraction compared to May.
Recent data indicate that the index achieved its strongest performance since February 2020 in April, with a year-on-year increase of 23.71%, driven by the demand for advanced chips used in artificial intelligence (AI) applications. In May, this growth moderated slightly to 22.6%.
Forecasts from Trading Economics anticipated a slowdown in the industrial production growth rate for June, yet it still projected an advance close to 20%.
From January to June, the sector of electronic parts and components saw a 25.78% increase compared to the same period last year, only surpassed by the segments of integrated circuits (+29.57%) and computers, electronic, and optical products (+51.64%).
The manufacturing industry production index rose by 17.77% in the first half of the year and by 20.03% in June from the previous year.
In 2024, Taiwan’s industrial production grew by 11.77%, reversing two consecutive years of decline, propelled by the rising global demand for advanced chips intended for AI and high-performance computing.
Analysts, however, warn that the trade war initiated by U.S. President Donald Trump might significantly impact the island’s economy, which is heavily reliant on the export of electronic goods, particularly semiconductors.
