TAIPEI (Taiwan News) — Taiwan’s manufacturing fixed asset investment jumped 28.1% in Q2 as chipmakers expanded advanced process and high-end packaging capacity, the Ministry of Economic Affairs reported Wednesday.
The ministry said spending reached NT$620.5 billion (US$20.47 billion), up 1.5% from Q1 and fueled by semiconductor expansion and supply chain upgrades, per CNA. Demand for AI, high-performance computing, and cloud services drove growth, though traditional industries struggled under global uncertainty.
Electronic components led the surge, with NT$451.8 billion in investment — nearly three-quarters of manufacturing spending. Foundries, packaging and testing firms, and memory makers all boosted capacity to meet demand for emerging technologies.
By asset type, machinery and equipment accounted for 76.7% of the total, rising 23% year on year, while construction projects surged 51.2% to 22.8%. The ministry said new plant construction and equipment purchases were central to the boom.
Other sectors also showed momentum. Chemicals investment climbed 9.8% to NT$22.7 billion as suppliers expanded electronic-grade materials and gases for semiconductors. Computers, electronics, and optical products jumped 64.1% to NT$19.9 billion on server, networking, and optical equipment upgrades tied to the AI wave.
Petroleum and coal products spending rose 1.3% to NT$16.8 billion, while basic metals jumped 25.7% to NT$15.5 billion on blast-furnace maintenance and low-carbon upgrades. Metal products rose 6.2% to NT$13.2 billion, but machinery equipment dipped 1.5% to NT$10 billion as earlier factory projects wound down.
The ministry said investment momentum is likely to continue as chipmakers push ahead with advanced processes and packaging — supported by trends in smart manufacturing and green energy — though trade policy shifts and geopolitical tensions could weigh on corporate spending.
