Taiwan Manufacturing Sector Sees Divergent Trends in December 2025: AI vs. Non-AI Industries

[NOWnews] Export orders hit a record high in 2025; however, a clear divergence has emerged between "AI-related" and "non-AI" industries. The Taiwan Institute of Economic Research (TIER) announced today the "Manufacturing Business Climate Outlook for December 2025." Within the electrical and electronic categories—including computers, electronic products, optical products, and electronic components—the surge in AI and High-Performance Computing (HPC) has shifted sentiments to a "Prosperity" Red Light. In contrast, most other industries remain stuck in a "Slump" Blue Light, leaving the overall manufacturing sector with a "Sluggish" Yellow-Blue Light.

According to statistics, the overall Manufacturing Business Climate Signal rose by 0.73 points, from 11.82 in November 2025 to 12.55 in December, maintaining a Yellow-Blue Light signaling sluggishness.

Industry Analysis

• Electronic Components: Driven by robust demand for AI, HPC, and cloud services, momentum for IC-related products remains strong. Double-digit annual growth was recorded across imports, exports, export orders, and production indices. Consequently, the December signal shifted from a "Growth" Yellow-Red Light to a "Prosperity" Red Light.

• Computers, Electronic, and Optical Products: Benefiting from the boom in AI and cloud computing, demand for servers, telecommunications equipment, semiconductor inspection equipment, and components continued to rise. This sector maintained a Red Light (Prosperity) in December.

Traditional Industries Lag Behind

Despite the "AI Dividend" enjoyed by some, other sectors remain weak:

• Food Industry (Consumer Goods): While bolstered by lunar New Year festivities, concerts, primary campaign activities for local elections, and World Baseball Classic promotions by convenience stores, these gains were offset by declining demand from Japan and ASEAN. Export growth turned negative, keeping the December signal at a Yellow-Blue Light (Sluggish).

• Chemical Products: Demand for dyes and pigments remains suppressed, with companies adopting a conservative stance toward orders and investments due to low-price competition from overseas rivals. Although AI expansion boosted shipments of chemicals for electronics, the December signal only slightly improved from a "Recession" Blue Light to a "Sluggish" Yellow-Blue Light.