TAIPEI (TVBS News) — Taiwan's industrial engine is firing on all cylinders as the island's tech-driven manufacturing sector reaches unprecedented heights. The Ministry of Economic Affairs (MOEA, 經濟部) revealed exceptional growth figures on Tuesday (June 24), reporting that the Industrial Production Index surged to 120.18 in May, representing a staggering 22.6% increase compared to the same month last year. This performance not only marks the highest monthly growth rate ever recorded but also extends the island's streak of positive industrial expansion to 15 consecutive months. The Manufacturing Production Index similarly achieved a historic milestone, climbing 24% to reach 121.41.
The robust performance extends beyond just the most recent monthly figures. Taiwan's industrial output has expanded by 16.39% during the January-to-May period compared to last year, with the manufacturing sector — the backbone of the export-oriented economy — growing at an even stronger pace of 17.43%. The island's powerhouse information electronics industry has been the primary growth engine, with electronic components manufacturing expanding by 34.53% and the crucial integrated circuits segment — dominated by semiconductor production — jumping 38.10%. Officials attribute this exceptional growth to surging global demand for high-performance computing components and artificial intelligence processors. The most dramatic gains appeared in the computer, electronic, and optical products category, which skyrocketed by an astonishing 89.28%, representing the sector's most substantial expansion in over four decades since record-keeping began in 1981.
Not all industrial sectors shared in the technology-driven boom, however. Traditional manufacturing segments showed significant contractions during the same period, highlighting Taiwan's increasingly two-track industrial economy. The chemical materials and fertilizer industry registered an 8.51% decline as global commodity prices stabilized and mainland demand softened. Similarly, the basic metals industry contracted by 6.30% amid ongoing challenges in the global steel market and reduced construction activity. The automotive and parts manufacturing sector experienced the steepest decline among major industries, falling by 16.31%. Ministry officials pointed to persistently cautious consumer spending patterns and weakening export momentum as primary factors behind the automotive sector's continued struggles. ◼
