TAIPEI (Taiwan News) — Taiwan’s manufacturing sector rose in October, fueled by AI and chip investments and marking 20 straight months of growth.

The Ministry of Economic Affairs said Tuesday that October’s industrial production index hit 115.11, up 14.5%, per Liberty Times. The manufacturing production index reached 116.03, up 15.38%. Both were record highs.

From January to October, the cumulative manufacturing production index rose 17.43% year-over-year. The ministry said strong AI demand could push the full-year index to a new high, with growth likely exceeding 15%.

MOEA Statistics Department Deputy Director Chen Yu-fang (陳玉芳) said AI, high-performance computing, and cloud data services are driving momentum, per UDN. Traditional industries, however, continue to cut output due to weak demand, offsetting some gains.

In electronics, AI-driven applications and semiconductor investments lifted output. Electronic components grew 21.66% year-on-year, while computer, electronics, and optical products surged 45.39%.

Meanwhile, traditional sectors faced declines amid global competition and market weakness. Chemical materials and fertilizers fell 0.47%, basic metals dropped 2.89%, and automotive and parts production slid 4.72%. Machinery, buoyed by semiconductor capacity expansion, rose 3.44%.

The department projects November’s manufacturing production index will range from 113.9 to 117.9, with year-on-year growth of 10.6% to 14.5%. Chen said full-year growth of 15% is feasible while a 20% increase is unlikely.