TAIPEI (Taiwan News) — The Ministry of Economic Affairs announced on Wednesday that Taiwan's manufacturing output reached NT$19.3 trillion (US$632.8 billion) last year.

This figure marks the second-highest record in history, second to 2022. It represents a 9.75% increase from the previous year, per CNA.

The sector generated approximately NT$5.5 trillion in the fourth quarter of last year, a 9.44% year-on-year increase from the same period in 2023. This marks the fourth consecutive quarter of growth.

Taiwan’s electronic components industry reached nearly NT$1.8 trillion in output, a 19.37% year-on-year increase, the ministry’s statistics department said. The integrated circuit sector saw a notable 26.81% increase, driven by rising demand for AI and high-performance computing, which fueled growth in 12-inch wafer foundry production.

However, a decline in demand for large-size TFT-LCD panels resulted in an NT$124 billion output, a 2.97% decrease from the previous year, partially offsetting growth in the electronic components sector.

The manufacturing of computers and optical products benefited from the expansion of AI applications and increased demand for cloud data services. The sector’s output reached nearly NT$450 billion, a 25.49% increase from 2023. 

The metal industry saw a 1.08% year-on-year increase in output, while the machinery and equipment sector, boosted by increased production of semiconductor equipment and components, recorded an 8.95% growth from the previous year.

The chemical materials and fertilizer industry experienced a 2.73% year-on-year drop in output, while the automotive and parts sector saw a significant 11.30% decline from the previous year.

Despite potential global economic impacts from international tensions and the ongoing US-China tech competition, the department said the expansion of technologies like high-performance computing and AI, coupled with rising demand for advanced semiconductor packaging, is expected to fuel growth in manufacturing output.