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Taiwan’s industrial production surges to 34-month high amid semiconductor boom

Taiwan’s industrial production surges to 34-month high amid semiconductor boom
Semiconductors and consumer electronics have driven Taiwan's industrial production

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Taiwan's industrial production has surged to a 34-month high, with a growth rate of 16.1% year-on-year in May. This increase has surpassed market forecasts and has been driven by strong demand for semiconductors, particularly from the AI boom. While some sectors, such as machinery and motor vehicles, continue to struggle, the overall industrial activity in Taiwan has been boosted by external demand, particularly from North and Central America. The recent data suggests upside risks to the 2024 GDP forecast, with the current forecast set at 3.7% year-on-year. The slight tightening of monetary policy is not expected to hinder momentum, and there are positive signals emerging in recent confidence and earnings data that could facilitate a modest recovery in the second half of the year.

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