Taiwan's industrial production has seen a significant growth of 18.11% year-on-year in July, marking the 17th consecutive month of growth. According to the Ministry of Economic Affairs (MOEA), this surge is primarily driven by strong global demand for artificial intelligence applications. The increasing popularity of AI apps, high-performance computing devices, and cloud services has been a major contributor to this growth.
The semiconductor sector has been a keypad sales have also contributed to the growth, with a 33.91% year-on-year increase in July. The increasing demand for AI applications has led to a substantial increase in production from pure wafer foundry operators, IC designers, and IC packaging and testing service providers.
The electronics component industry has also reported a notable growth of 29.52% year-on-year, supported by the increasing popularity of AI applications and high-performance computing devices. The growth momentum is expected to continue, driven by the debut of new consumer electronics devices and further investment in AI development.
The MOEA has revised upward Taiwan's GDP growth forecast to 4.45% for 2025, citing a surge in exports and private investment fueled by strong global demand for AI. The government plans to launch its "Ten Major AI Infrastructure Projects" initiative, aiming to generate over $510 billion in economic value by 2040 and create 500,000 jobs. This initiative is expected to further boost Taiwan's economic growth and solidify its position as a leader in the AI industry.
