Ministry of Economic Affairs: Domestic Production Ratio for Export Orders Rises to 52%, Manufacturing Added Value Increases

The Ministry of Economic Affairs today stated in a press release that due to the US-China trade dispute and geopolitical influences, enterprises have readjusted their production arrangements. Coupled with the government's "Invest in Taiwan" three major programs, this has led to the return of high-end production capacity. The domestic production ratio for export orders significantly increased from 46.5% in 2017 to 52.9% in 2025, indicating a clear rise in the proportion of domestic manufacturing. In terms of output value performance, the Ministry of Economic Affairs stated that despite fluctuations caused by the US-China trade dispute, the pandemic, and inventory adjustments, the manufacturing output value grew from NT$14.7 trillion in 2017 to NT$21.3 trillion in 2025, with an average annual growth rate of 4.7%, driven by the expanding demand for emerging technologies such as AI. Among these, the output value of the electronic components industry reached NT$7.7 trillion, and the computer, electronic, and optical products industry also saw its output value reach NT$2.8 trillion due to AI applications, becoming the main drivers of growth. In terms of added value, the Ministry of Economic Affairs pointed out that with advanced processes and high-end production lines remaining in Taiwan, the added value rate for manufacturing increased from 30.2% in 2017 to 35.8% in 2024, an increase of 5.6 percentage points, expanding the scale of added value to NT$9.2 trillion, an increase of over 50% compared to 2017. A closer look at the industrial structure shows that the electronic components industry had the highest added value in manufacturing, reaching NT$4.4 trillion in 2024 with an added value rate of 51.4%, nearly doubling and increasing by 6.8 percentage points respectively compared to 2017. The computer, electronic, and optical products industry, boosted by AI server orders, saw its added value rate rise to 39.3% in 2024, a significant increase of 13.6 percentage points from 2017, the largest increase in manufacturing, and its added value also expanded to NT$1.3 trillion, an increase of nearly 1.2 times compared to 2017, leading manufacturing in growth momentum. The Ministry of Economic Affairs analyzed that with the localization of high-end processes and the continuous expansion of supply chain clustering effects, not only has the domestic production ratio increased, but it has also effectively driven the growth of added value, strengthening Taiwan's key position in the global technology industry chain and promoting the overall economy towards high added value development. In terms of export structure, the Ministry of Economic Affairs added that driven by AI applications, the proportion of ICT and audio-visual product exports has sharply risen from 10.8% in 2017 to 39.2% in 2025, surpassing electronic components to become the largest export item. At the same time, the proportion of exports to the United States rose to 31% in 2025, higher than Mainland China and Hong Kong's 26.6%, making the United States Taiwan's largest export market again. (Editor: Yang Lan-hsuan) 1150407