Taiwan Manufacturing Sentiment Climbs to 15.75 in May as AI Demand Lifts Confidence
Updated
Updated · 台北時報 · Jun 30
Taiwan Manufacturing Sentiment Climbs to 15.75 in May as AI Demand Lifts Confidence
3 articles · Updated · 台北時報 · Jun 30
Summary
Taiwan’s manufacturing composite index rose to 15.75 in May from 14.03 in April, its highest reading since March 2025 and still in the “green” stable range.
AI-led demand drove the gain, with TIER citing strong global orders for electronic components and ICT products, while easing Middle East tensions and lower oil prices helped reduce imported energy inflation pressure.
Electronic components were upgraded to the top “red” rating as AI and high-performance computing orders kept production strong, and many manufacturers were running at full capacity amid DRAM demand outstripping supply.
Machinery and equipment improved to “yellow-red,” supported by investment in advanced chipmaking, packaging, testing and factory automation, alongside double-digit growth in export orders and industrial production.
TIER said trade-policy and geopolitical risks still cloud the outlook, but expanding cloud capex and government AI infrastructure spending should keep supporting Taiwan’s chips, server and advanced packaging industries.
Is Taiwan’s record-breaking economic boom on a collision course with rising geopolitical uncertainty and volatile energy markets?
As AI's energy demand soars, will the global power grid become the biggest bottleneck for the multi-trillion dollar tech boom?
With critical AI memory costing 25x more and in short supply, is a component crisis about to stall the AI revolution?
Taiwan’s Manufacturing Sector Reaches 14-Month High Driven by AI Megatrend and Geopolitical Challenges
Overview
In May 2026, Taiwan's manufacturing sector reached its highest business sentiment in 14 months, driven by strong global demand for artificial intelligence (AI) computing capacity. This demand led major cloud service providers to boost capital spending and pushed governments to accelerate AI infrastructure development. As a result, Taiwan saw increased demand for its semiconductors, advanced packaging, testing, and server industries. The machinery and equipment manufacturing sector also improved, supported by ongoing investments in advanced semiconductor manufacturing and factory automation, as well as robust export orders. These interconnected trends highlight Taiwan's vital role in the global technology supply chain.