TAIPEI (Taiwan News) — Taiwan’s industrial and manufacturing output reached record highs in February, driven by strong global demand for AI and cloud computing, despite the Lunar New Year holiday.
According to the Ministry of Economic Affairs Department of Statistics, the industrial production index for February stood at 109.46, up 17.83% year on year. The manufacturing production index reached 111.55, up 19.64% from a year earlier. Both indices set record highs for the same month in previous years and extended a streak of 24 consecutive months of growth, per Liberty Times.
For the combined January-February period, the industrial production index rose to 116.68, a 22.95% increase year-on-year, while the manufacturing production index reached 118.79, up 24.78%. Both figures also set record highs for the same period.
Chen Yu-fang (陳玉芳), deputy director of the Department of Statistics, noted that the total number of working days in January and February was 35, two fewer than last year.
However, the recovery momentum of traditional industries remained weak, with most experiencing negative growth in February. The basic metals industry and the chemical materials and fertilizer sector saw their production indices decline by 4.66% and 2.47% year-on-year, respectively, in the first two months.
The automobile and parts industry fell 3.38% year-on-year, reversing previous gains. In contrast, the machinery and equipment industry benefited from continued semiconductor capacity expansion, posting an 8.78% increase.
Chen acknowledged uneven growth across industries. For example, the machinery and equipment industry has seen a rebound in machine tool orders and exports, but this has not yet been fully reflected in production. The steel and petrochemical industries are affected by weak global demand, per UDN.
Regarding whether tensions in the Middle East will disrupt production, Chen said it is currently difficult to determine. Short-term effects remain to be seen, but in the long term, electronic components and ICT products will benefit from AI demand and cloud computing providers, as momentum is likely to continue.
Looking ahead, the MOEA forecasts the manufacturing production index for March will range between 130.97 and 134.97, representing year-on-year growth of 22.4% to 26.1%, respectively.
For the third quarter, the manufacturing production index is projected to fall between 122.85 and 124.18, corresponding to annual growth of 23.9% to 25.3%. The quarter is expected to mark the highest level for the same period on record and the second-highest single-quarter performance in history.
