Taiwan’s industrial production grew by 5.07% year-on-year in January, driven by strong demand for electronic components used in AI and high-performance computing.

The electronics sector led the growth, with output of electronic components surging by 16.67%.

Integrated circuits (IC) saw a 22.92% increase, reaching an all-time high. This growth was largely attributed to sustained demand from US tech firms for chips vital in AI and high-performance computing.

However, non-tech sectors faced challenges, with declines in the production of basic metals, chemicals, and machinery equipment.

The Ministry of Economic Affairs forecasted that the demand driven by AI applications will continue to support the tech sector.