March Industrial Production Index Marks 25th Consecutive Month of Growth, Hitting Record High; Middle East Conflict Impact Limited
Taiwan's Ministry of Economic Affairs announced that the industrial and manufacturing production indices for March reached historic highs, driven by AI demand. The impact of Middle East tensions remains limited due to inventory resilience.
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- 📰 Published: April 23, 2026 at 20:25
- 🔍 Collected: April 23, 2026 at 20:32 (6 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 20:41 (9 min after Collected)
(Central News Agency, Reporter Tseng Yun-ting, Taipei, 23rd) The Ministry of Economic Affairs announced today that the industrial and manufacturing production indices for March both hit record highs for a single month, marking 25 consecutive months of positive growth. The Department of Statistics of the Ministry of Economic Affairs pointed out that the continued expansion of demand for AI and high-performance computing (HPC) has become the main growth driver. Although the Middle East conflict affected the raw material supply for some traditional industries, the impact on overall production in March was limited thanks to inventory buffers and government assistance.
The Ministry of Economic Affairs reported today that the industrial production index for March was 136.90, an annual increase of 28.68%, of which the manufacturing production index was 139.92, an annual increase of 30.73%. Both indices set new historic highs for the same period and new single-month highs.
Cumulatively, the industrial production index for the first quarter of this year was 123.05, the second-highest for a single quarter, marking an annual increase of 24.63%; the manufacturing production index was 125.43, a record high for a single quarter, growing by 26.52%. The Ministry of Economic Affairs estimates that the manufacturing production index for April will fall between 130.70 and 134.70, an annual increase of 17.7% to 21.3%.
Chen Yu-fang, Deputy Director of the Department of Statistics at the Ministry of Economic Affairs, stated that benefiting from strong demand for AI and HPC, the production momentum of related industries remains strong. However, due to the high base period last year, the magnitude of the annual growth rate this year might be affected, causing the growth rate to converge.
Observing the performance of major sectors, the electronic parts and components industry, along with the integrated circuit industry within it, both hit record highs, registering 147.02 and 170.79 respectively, with annual increases of 27.87% and 33.68%, maintaining positive growth for 27 consecutive months.
Chen Yu-fang analyzed that global AI demand continues to rise. Even with geopolitical tensions in the Middle East, the development of related industries remains unaffected. Various countries are actively investing in AI deployments, continuing to inject production momentum into tech industries like semiconductors and servers.
Regarding traditional industries, Chen Yu-fang noted that driven by the semiconductor expansion effect, low base period factors, and customer inventory restocking demands, the machinery, basic metal, and automotive and parts industries all turned from negative to positive, with annual increases of 7.8%, 5.54%, and 0.10% respectively. Simultaneously, policies such as commodity tax reductions and passenger transport electrification provided support.
However, the chemical materials and fertilizer industry continued to underperform due to weak market demand, ongoing international competitive pressure, and partial production line maintenance and reduction, showing an annual decline of 3.88%, marking two consecutive months of negative growth.
Regarding the impact of the Middle East conflict, Chen Yu-fang pointed out that although it caused fluctuations in petrochemical product logistics and raw material supply, with existing inventories of businesses and government assistance in diversified procurement, the impact on traditional industries is currently limited. No significant shock was seen in March production, though April's performance will require continued observation. (Editor: Yang Lan-hsuan) 1150423
The Ministry of Economic Affairs reported today that the industrial production index for March was 136.90, an annual increase of 28.68%, of which the manufacturing production index was 139.92, an annual increase of 30.73%. Both indices set new historic highs for the same period and new single-month highs.
Cumulatively, the industrial production index for the first quarter of this year was 123.05, the second-highest for a single quarter, marking an annual increase of 24.63%; the manufacturing production index was 125.43, a record high for a single quarter, growing by 26.52%. The Ministry of Economic Affairs estimates that the manufacturing production index for April will fall between 130.70 and 134.70, an annual increase of 17.7% to 21.3%.
Chen Yu-fang, Deputy Director of the Department of Statistics at the Ministry of Economic Affairs, stated that benefiting from strong demand for AI and HPC, the production momentum of related industries remains strong. However, due to the high base period last year, the magnitude of the annual growth rate this year might be affected, causing the growth rate to converge.
Observing the performance of major sectors, the electronic parts and components industry, along with the integrated circuit industry within it, both hit record highs, registering 147.02 and 170.79 respectively, with annual increases of 27.87% and 33.68%, maintaining positive growth for 27 consecutive months.
Chen Yu-fang analyzed that global AI demand continues to rise. Even with geopolitical tensions in the Middle East, the development of related industries remains unaffected. Various countries are actively investing in AI deployments, continuing to inject production momentum into tech industries like semiconductors and servers.
Regarding traditional industries, Chen Yu-fang noted that driven by the semiconductor expansion effect, low base period factors, and customer inventory restocking demands, the machinery, basic metal, and automotive and parts industries all turned from negative to positive, with annual increases of 7.8%, 5.54%, and 0.10% respectively. Simultaneously, policies such as commodity tax reductions and passenger transport electrification provided support.
However, the chemical materials and fertilizer industry continued to underperform due to weak market demand, ongoing international competitive pressure, and partial production line maintenance and reduction, showing an annual decline of 3.88%, marking two consecutive months of negative growth.
Regarding the impact of the Middle East conflict, Chen Yu-fang pointed out that although it caused fluctuations in petrochemical product logistics and raw material supply, with existing inventories of businesses and government assistance in diversified procurement, the impact on traditional industries is currently limited. No significant shock was seen in March production, though April's performance will require continued observation. (Editor: Yang Lan-hsuan) 1150423