TAIPEI (Taiwan News) — Taiwan’s manufacturers ramped up fixed asset purchases to NT$609.9 billion (US$20.39 billion) in Q1, marking an 82.3% year-on-year surge, the economics ministry reported Tuesday.

The semiconductor and electronics components sector led the charge, investing NT$453.8 billion. This accounted for 74.4% of total spending and rose 143.3% from a year earlier, as chipmakers expanded process technologies and advanced packaging capacity, per CNA.

Q1 manufacturing revenue, including overseas output, hit NT$8.15 trillion, up 10.6% year-on-year, driven by global AI trends and continued cloud infrastructure expansion. The growth was fueled by demand for AI applications, high-performance computing, and cloud data services, which boosted the electronics sector.

Investment in basic metals jumped 35.7% to NT$15.8 billion, supported by upgrades in energy efficiency and smart manufacturing by steelmakers. However, not all sectors posted gains.

The chemical materials sector dropped nearly 10% as major expansion projects wrapped up, while metal products and petroleum-related industries also saw declines in fixed asset purchases.

The ministry said investments are expected to remain robust as leading chipmakers double down on AI-related R&D and domestic production. Still, geopolitical risks and trade uncertainty could temper the pace of future growth, it added.