TAIPEI (Taiwan News) — The Taiwan Institute of Economic Research said Tuesday that Taiwan’s February Manufacturing Composite Indicator was 97.94 points, down by 0.01 points, indicating overall stability.

TIER said in a press release that US President Donald Trump’s policies have triggered protectionist sentiments. Despite these risks, Taiwan’s semiconductor and information and communication demand remain robust, per CNA.

According to the report, the service industry dropped for the second consecutive month to 93.28 points, down 2.48 points. The construction sector rebounded to 102.46 points, up 0.48 points.

TIER Economic Forecast Director Sun Ming-te (孫明德) said manufacturers’ sentiment in February was better than last month, with most holding a neutral outlook for the next six months, per UDN. He added that the slight 0.01-point decline suggests a stable performance for the manufacturing sector in January and February, whereas the service sector performed slightly weaker.

Regarding Taiwan’s trade performance, Sun said exports in the first two months of the year grew nearly 17% year-over-year. Taiwan’s exports remain driven by information and communications technology products, with finished goods primarily sold to the US, while components are shipped to China and Southeast Asia.

Sun cautioned that “AI commoditization is happening now,” reminding industries not to neglect broader shifts. He cited two major US companies that faltered over the past 40 years. IBM focused only on mainframes and ignored the rise of PCs, leading to its decline.

Similarly, Intel dominated the PC era but remained fixated on processors. When mobile devices became widespread after 2010, Intel failed to adapt, losing market share to Qualcomm and Nvidia.

Sun said Trump administration policies could mean economic unpredictability. While semiconductor investments, such as TSMC’s US expansion, may boost surrounding real estate, their overall impact is likely to be weaker.