TAIPEI (Taiwan News) — The economics ministry announced Tuesday that January’s industrial production index reached 96.31, marking a 5.07% year-on-year increase and exceeding expectations.

MOEA Department of Statistics Deputy Director Huang Wei-chieh (黃偉傑) said the industrial and manufacturing production indices were the second highest on record for the same period and marked 11 consecutive months of growth, per CNA.

Huang said February is also expected to maintain a positive growth trend, with the manufacturing production index estimated to range between 92.46 and 96.46, reflecting an annual increase of 18.6% to 23.7%. The combined index for the first two months is projected to be between 94.43 and 96.43, growing by 11.4% to 13.8% year-on-year.

For electronic components, the largest sector, the January production index reached 106.09, the second highest for the same period, marking a 16.67% annual increase and 13 consecutive months of growth. The integrated circuit (IC) industry index hit a record 120.01, soaring by 22.92%, driven by strong demand for AI and high-performance computing applications, which boosted production in 12-inch wafer foundries and IC and wafer testing.

Meanwhile, traditional industries experienced negative growth across the board. The basic metals sector shrank by 14.82% year-on-year, chemicals and fertilizers by 7.08%, machinery and equipment by 2.10%, and automobiles and parts by 27.20%. Notably, the chemicals and fertilizers sector, as well as machinery and equipment, shifted to negative growth.

The statistics department estimates February’s manufacturing production index will grow from 18.6% to 23.7% year-on-year, per RTI. The combined year-on-year growth for January and February is expected to range from 11.4% to 13.8%, suggesting that the usual seasonal slowdown may not occur.

Huang said despite geopolitical uncertainties, AI and high-performance computing demand are expected to drive stable growth in Taiwan’s manufacturing sector.