TAIPEI (TVBS News) — Taiwan Research Institute (台灣綜合研究院) released the Electric Prosperity Index (EPI) for August on Wednesday (Sept. 25), revealing a significant rise in domestic economic activity.
The report showed that industrial electricity demand reached a two-year high, driven by strong demand in emerging technologies like artificial intelligence (AI) and high-performance computing.
Nationwide, high-voltage industrial electricity usage in August grew 2.48% year-over-year, with overall industrial electricity consumption increasing by 1.97%.
The U.S. Federal Reserve (美國聯準會) announced a rate cut in September, citing global economic slowdown risks, yet emerging markets continue to grow steadily. The domestic economy, bolstered by AI and high-performance computing, has seen robust supply chain demand, especially in the electronics sector.
August's industrial electricity consumption growth reflects a positive economic outlook, with export orders increasing for six consecutive months. The forecast for Taiwan's economic growth rate in August 2024 stands at 3.5%.
Manufacturing electricity usage rose by 1.89%, while the service sector saw a 2.20% increase. Notably, the semiconductor, computer, and electronics industries experienced over 5% growth, setting new records for electricity consumption.
The chemical materials sector saw a 7.73% rise in electricity usage due to increased downstream product demand, resulting in a warning, yellow-blue signal for the EPI. Conversely, the steel industry, impacted by China's real estate downturn, showed a mere 0.42% growth, maintaining a downward yellow-blue signal for the second consecutive month.
The computer, electronics, and optical products sector benefited from ongoing 5G and cloud industry demand, achieving an 8.3% growth rate and an upward yellow-red signal.
AI's influence has propelled the semiconductor industry into a robust recovery cycle, leading to significant growth in semiconductor equipment and benefiting related traditional industries.