TAIPEI (Taiwan News) — The Ministry of Economic Affairs announced Tuesday that Taiwan’s integrated circuit production in the first two months of the year hit an all-time high, growing by 21.74%.

According to a press release, Taiwan’s industrial production index for February was 92.44, a 3.83% decrease compared to the previous month, but up 17.91% year-on-year. Overall, manufacturing output for Q1 is expected to grow between 11.2% and 12.7%, per CNA.

In the largest sector, electronic components, the January production index reached 106.09, the second highest for the same period, marking a 16.67% annual increase and 13 months of growth. The integrated circuit industry index hit a record 120.01 for the period, soaring by 22.92%, driven by strong demand for AI and high-performance computing applications.

MOEA Department of Statistics Deputy Director Huang Wei-chieh (黃偉傑) said the AI boom has driven growth in 12-inch wafer foundry services, IC wafer testing, and motherboard production. The electronic components sector index for the first two months of the year was 102.88, a record high for the period, with annual growth of 17.97%.

The main driver was the IC industry, which saw its production index reach 115.17, the highest ever for the first two months of the year, growing 21.74% year-on-year. Meanwhile, the panel and component industry experienced a slight growth of 0.21% in the same period.

Huang explained that since many uncertainties remain regarding the policy, most businesses are adopting a wait-and-see approach. The primary drivers of industrial production growth were high-end servers and semiconductor-related industries.