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Taiwan Industrial Production Hits Lowest Point Since January 2025

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Taiwan Industrial Production Hits Lowest Point Since January 2025

Taiwan's industrial production hit a low of more than one year in May, the slowest expansion since January 2025, according to data released by the Ministry of Economic Affairs, or MOEA, on Wednesday.

Industrial production rose 11.78% year over year in May, below the upwardly revised figure of 14.94% in April.

The expectation was for a 9.9% output increase, according to Trading Economics data.

Output from the mining and stone quarrying sector slid 7.61% during the month, while the electricity and gas supply sector saw production slip 1.29%.

Manufacturing output climbed 12.68%, the ministry said.

Output from the electronic components sector jumped 12.17% due to artificial intelligence applications and high-performance computing demand. The integrated circuit industry's output grew 14.43%.

Manufacturing output from the computer, electronics, and optical parts surged 36.62% due to strong demand for cloud data services and related infrastructure, while solid-state drive output also grew.

Output from panels and components slid 9.42%.

Taiwan's basic metals sector saw output increase 8.19% on a surge in demand for semiconductors.

However, chemical materials and fertilizers saw output plunging 12.92% during the month due to a drag in demand.

Automotive parts production rose 2.44% due to reductions in commodity taxes, as well as electrification efforts for passenger vehicles, the ministry said.

The island's water supply industry output grew 3.54%.

On to retail sales, the figure increased 4.9% year over year to NT$415.3 billion in May, easing from the 5.2% expansion in the previous month. The latest figures are in line with expectations, according to Trading Economics data.

Mother's Day sales also helped boost sales of cosmetics, health supplements, and home appliances, as well as that of textiles and apparel, the ministry said in a separate release.

Sales of fuel and related products surged 16.9% during the period, up from 7.1% recorded in the previous month. Taiwan imports about 96% of its energy, according to a Bloomberg report.

Retail from non-specialized stores slowed to a 5.4% growth from 5.7% in the previous month, while that of department stores saw a 9.3% increase in sales.

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