TAIPEI (Taiwan News) — Taiwan’s industrial production increased year-on-year for a 27th consecutive month in May, driven by demand for AI and high-performance computing, the Ministry of Economic Affairs said Wednesday.
The ministry said the industrial production index reached 136.65 in May, up 11.78% from a year earlier, while the manufacturing production index rose 12.68% to 139.12, per UDN. Both figures set records for May and exceeded expectations, reflecting continued momentum in the technology sector.
Ministry of Economic Affairs Department of Statistics Deputy Director-General Chen Yu-fang (陳玉芳) said the performance was mainly driven by the electronics supply chain, particularly integrated circuits and foundry output, per Liberty Times.
Electronic components production reached a May record of 150.34, while integrated circuit production hit 172.78, also a record high, Chen said.
AI demand and high-performance computing applications continued to support semiconductor and server production, she said. Upcoming consumer electronics launches in the second half of the year are also expected to boost demand further.
Looking ahead, Chen said manufacturing output in the second half of the year is expected to outperform the first half, driven by expanding AI applications and continued semiconductor investment. She noted that although year-on-year comparisons will be tougher because of last year’s high base, overall momentum remains strong.
The ministry forecast that manufacturing output in June will rise between 19.9% and 23.4% year-on-year. It also expects manufacturing production in the first half of 2026 to increase by about 20% from a year earlier.
