Taiwan's Q1 Manufacturing Output Hits NT$5.9 Trillion, a 9th Consecutive Rise, Driven by AI Demand: MOEA

(CNA, by reporter Tseng Yun-ting, Taipei, 19th) The Ministry of Economic Affairs (MOEA) today released statistics on manufacturing output for the first quarter of this year. Driven by demand for AI, high-performance computing, and cloud infrastructure, the information and electronics industry grew substantially. Although some traditional industries adjusted production downwards due to weak market demand and competitive pressure, the overall manufacturing sector maintained strong momentum. Output in the first quarter reached NT$5.951 trillion, a year-on-year increase of 20.58%, marking the ninth consecutive quarter of positive growth. In the information and electronics industry, the electronic components sector's output reached NT$2.1779 trillion, up 25.29% year-on-year. The MOEA noted that the integrated circuit industry performed exceptionally well, with output climbing to NT$1.4912 trillion, a 28.97% annual increase. This was mainly due to strong demand for high-performance computing and AI applications, which boosted production of 12-inch wafer foundry services, Dynamic Random-Access Memory (DRAM), and IC packaging. However, the panels and components sector saw its output decrease by 12.61% year-on-year due to weak demand and falling prices for TFT-LCDs. The computer, electronic products, and optical products industry grew significantly, with output reaching NT$1.1150 trillion, a year-on-year increase of 143.74%. The MOEA stated this was mainly due to the continued enthusiasm for cloud infrastructure construction and strong momentum in semiconductor equipment investment, leading to robust production of servers, solid-state drives (SSDs), switches, as well as semiconductor inspection equipment and related components. Performance in traditional industries was more varied. The chemical materials and fertilizers industry's output was NT$3312 billion, down 10.04% year-on-year. The MOEA attributed this to persistent weak market demand and intense international competition, leading some production lines to halt for maintenance or reduce output based on market conditions, which decreased the value of products like ethylene and polyester pellets. The basic metals industry's output was NT$3190 billion, a 7.35% annual decrease. The MOEA pointed out that the global steel market's recovery remains slow, with clients placing conservative orders, prompting some producers to adjust production, reducing output of steel billets, hot-rolled stainless steel coils, and rebar. The automotive and parts industry's output was NT$1066 billion, down 3.05% year-on-year. This was mainly due to production cuts for multi-purpose vehicles, auto parts, and light trucks in response to conservative client orders. However, growth in electric sedans and large electric buses, driven by new model launches and policies promoting bus electrification, partially offset the overall decline. In contrast, the machinery equipment industry grew, with output reaching NT$2327 billion, up 2.66% year-on-year. This was primarily due to the continued expansion of advanced semiconductor manufacturing processes, which increased demand for electronic and semiconductor production equipment and components, as well as automated warehousing equipment. The MOEA stated that looking ahead, the global geo-