TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) said Tuesday (Nov. 19) Taiwan’s manufacturing output in Q3 reached NT$5.16 trillion (US$159.2 billion), marking a 10.34% year-on-year increase and the third consecutive quarter of growth.

The ministry said in a press release that strong demand for AI, high-performance computing (HPC), and cloud data services boosted production momentum in the information and electronics industries.

The MOEA’s Department of Statistics said the output of the electronic components industry increased by 18.11% compared to the same quarter last year, per CNA. The integrated circuit industry, driven by robust demand for AI and HPC, saw its output rise to NT$1.04 trillion, a single-quarter record high with a 25.34% year-on-year increase.

However, the panel and component industry was affected by weak demand for large-sized TFT-LCD panels, resulting in an output of NT$139.5 billion, a 4.26% year-on-year decrease, offsetting some of the growth.

Regarding the computer electronics and optics industry, the department said the expansion of AI applications boosted the production of servers, increasing the output to NT$530.8 billion, a single-quarter high with a 43.46% year-on-year increase.

The department said the growth momentum of the global economy and trade depends on factors like the US-China technology disputes and geopolitics. However, the expansion of AI and HPC is expected to drive demand for domestic semiconductor advanced processes and servers, it said.