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Taiwan’s economy thrives on AI, faces energy challenges

Reporter Isabel Wang
Release time:2024/10/29 15:49
Last update time:2024/10/29 15:49
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TAIPEI (TVBS News) — Taiwan's Ministry of Economic Affairs (MOEA, 經濟部) reported a significant boost in the industrial sector for September, driven by strong demand for artificial intelligence (AI), high-speed computing, and cloud data services. The Industrial Production Index (IPI) reached 99.51, marking an 11.22% year-on-year increase and seven consecutive months of growth.

In addition, the National Development Council's (國發會) economic monitoring indicator climbed to 39 points in August, a four-point rise from the previous month, achieving its highest level in nearly 34 months. This surge turned the indicator red, signaling a bustling economy fueled by AI demand.

 

Jason Kao (高辰晞), CEO of an AI technology firm, highlighted the adaptability of AI across industries, stating, "Any industry can adopt AI technologies. There is no possibility that the government will put resources into AI and cause industrial imbalance." He further noted the necessity of AI implementation in sectors like retail and manufacturing, emphasizing the importance of industry awareness in integrating AI.

Conversely, the Taiwan Institute of Economic Research's (TIER, 台經院) October report pointed to downturns in the manufacturing, service, and construction sectors, with each hitting their lowest points in 2024. The manufacturing sector dropped to 94.82 points, the service sector to 91.43 points, and the construction sector to 101.21 points.

Chen Shin-hui (陳馨蕙), an academic researcher, commented on the need for supporting measures in industry development, particularly highlighting the energy demands of AI in the context of ongoing energy transformations. The Chinese National Federation of Industries (全國工業總會) has called on the government to help traditional industries harness AI for transformation to stimulate further economic growth. As Taiwan adapts to these economic changes, the role of AI remains crucial across various sectors.
 

 

The Taiwan Briefing

#Taiwan economy#industrial sector growth#AI demand#high-speed computing#cloud data services#economic monitoring indicator#AI technology firm#AI in retail and manufacturing#Taiwan Institute of Economic Research#energy transformation and AI
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