TAIPEI (Taiwan News) — The Ministry of Economic Affairs said Wednesday that Taiwan’s manufacturing output reached NT$5.2 trillion (US$160 billion) in the third quarter, up 3.69% from the same period last year, marking seven consecutive quarters of growth, mainly driven by rising demand for AI-related products.
In the third quarter, the electronic components sector posted output of NT$1.9 trillion, up 18.27% from last year. The ministry attributed the growth mainly to an increase in integrated circuit orders, which boosted wafer foundry production, IC design, and motherboard output, driving IC-related output to NT$1.3 trillion — a record for a single quarter and a 24.86% year-on-year increase, per CNA.
However, the sector’s panel and related components industry was affected by less demand for large-size LCD panels, with output falling 11.42% year-on-year to NT$123.5 billion.
The computer and optical products sector posted third-quarter output of NT$602.5 billion, up 14.38% year-on-year. The growth was mainly driven by rising demand for AI and cloud data services, boosting production of servers, communication equipment, hard drives, and semiconductor testing equipment.
The ministry noted that traditional industries did not perform as strongly as the electronics sector. Affected by global economic uncertainty and production cuts or maintenance schedules, with only the machinery equipment sector showing an increase in output.
The machinery sector posted NT$234.4 billion in Q3 output, up 0.92% year-on-year, boosted by semiconductor capacity expansion and rising automated storage equipment orders. In contrast, the chemicals and fertilizers sector fell 19.08% to NT$321.6 billion due to declining orders and stronger competition from overseas.
The automotive and auto parts sector also saw a decline, with third-quarter output falling 9.78% year-on-year to NT$103.9 billion. However, rising demand for new hybrid and electric models, combined with government policies promoting bus electrification, helped drive production of electric buses and passenger EVs.
The ministry forecast that growing demand for AI and high-performance computing will continue to drive orders for semiconductors and servers, supporting ongoing growth in manufacturing output.
