Industrial production rose 8.85 percent last month.

‘STRONG’:
Output of computers and optical products rose 4.35 percent year-on-year last month, driven by demand for artificial intelligence applications and semiconductor tools.

• Lisa Wang / Staff Reporter

The industrial production index rose 8.85 percent year-on-year to 100.6 last month as robust demand for artificial intelligence (AI) applications and high-performance computing (HPC) devices boosted demand for advanced chips and data centers, the ministry said yesterday. economy.

The index measures changes in the value of output produced by the local manufacturing, mining and utilities sectors, with manufacturing, a major component of industrial output, rising 9.32 percent year-on-year to 100.51 last month.

Last month, industrial and manufacturing production recorded annual growth for the eighth month in a row.

Photo: Jiang Ying-ying, AP

In the first 10 months of this year, industrial production and manufacturing output grew by 10.68 percent and 11.11 percent year-on-year, respectively.

“Industrial production looks set to rise throughout this year, ending two consecutive years of decline,” Huang Wei-chie (黃偉傑), deputy director-general of the Statistics Department, said by telephone yesterday. “The outlook for the first quarter of next year remains unclear. The main uncertainty is US trade policy under the leadership of (US President-elect) Donald Trump. We’re watching closely to see how this develops.”

Industrial production is expected to rise from 5.8% to 10.1% annually this month to between 98.08% and 102.08%, the ministry forecast.

In the worst-case scenario, industrial output would contract 2.4 percent sequentially due to a disappointing recovery in traditional sectors hit by China’s economic slowdown and industrial overcapacity, Huang said.

Among the six major industries in the manufacturing sector, three reported year-on-year production growth last month, with the electronic components industry reporting the largest increase of 16.47 percent, helped by rising demand for HPC and AI devices, leading to increased demand for 12-inch plates. , chip design, testing and packaging services, the ministry said.

Production of computers and optical products rose 4.35 percent year-on-year last month, driven by robust demand for artificial intelligence applications and semiconductor inspection equipment, the ministry said.

Production of machinery equipment rose 11.06 percent last month, helped by strong demand for equipment from semiconductor companies.

Demand for machine tools remained sluggish as slowing global economic growth reduced companies’ investment in manufacturing equipment, it said.

Production of non-ferrous metals fell 3.52 percent last month due to sluggish demand for steel worldwide and low prices for steel products from China, the ministry said.

Production of chemical materials and fertilizers fell 5.01 percent last month as producers cut production to cope with falling demand. The decline was also the result of disruptions caused by typhoons last month, the company added.

Auto production fell 12.59 percent last month, the ministry said, citing component shortages and competition from global automakers.