Taiwan’s economy continued its growth in February, driven by strong demand for AI chips, according to data released by the National Development Council (NDC) on Mar. 27.

The NDC’s composite index, which measures economic conditions, registered a yellow-red light for the second consecutive month, indicating moderate economic strength.

The index increased by two points to 37, the highest level within the yellow-red range.

In February, two of the nine sub-indexes showed positive changes. Sales in the manufacturing sector and revenue from retailers, wholesalers, and food and beverage businesses both indicated stronger performance.

This growth was attributed to factory expansions and increased imports of semiconductor equipment driven by AI chip demand.