TAIPEI (Taiwan News) — Taiwan’s electricity-based business cycle indicator stayed at yellow-red in August for a second straight month as semiconductor power consumption set another record, while traditional sectors weakened.

Nationwide high-voltage industrial usage rose 1.12% year-on-year, keeping the signal in expansion territory, and Taiwan Research Institute estimates about 3.0% GDP growth for the month, per CNA.

The split is stark. Semiconductors led gains on AI, high-performance computing, and cloud build-outs as monthly power use climbed 9.53% and flashed red for a fifth consecutive month. 

Computers, electronics, and optical products also advanced, with August power up 5.59%. In contrast, traditional industries moved the other way: steel −9.41%, textiles −16.37%, machinery −11.96% — reflecting soft global demand and added US tariff pressure, per UDN.

Taiwan Research Institute says momentum should carry into the second half even as early-year pull-forwards fade. Policy signals from Washington — including tariff settings tied to US semiconductor production and investment — add uncertainty, while the widening gap between tech and legacy sectors poses a risk to balanced growth.

Taipower’s high-voltage data also point to modest breadth: overall industry +0.6%, with manufacturing +0.31% and services +1.41%. For now, AI-driven orders are pulling through Taiwan’s electronics supply chain.