The AI ​​wave is rising! The output value of Taiwan's electronics and semiconductor equipment industry will hit a record high in 2025, and is expected to reach a new high this year

The AI ​​wave has pushed the output value of the electronics and semiconductor production machinery and equipment industry (equipment industry) to a record high in 2025, and the full-year output value is expected to reach a new high this year. (Provided by the Statistics Department)

[Reporter Liao Jianing/Taipei Report] The Statistics Office of the Ministry of Economic Affairs pointed out today (5th) that the AI wave has pushed the output value of the electronic and semiconductor production machinery and equipment industry (equipment industry) to a record high in 2025. The output value in the first seven months of this year increased by 40% compared with the same period last year, and the full-year output value is expected to reach a new high. In addition, due to the restructuring of the supply chain, ASEAN has surpassed China and Hong Kong and has become the largest export market for the equipment industry.

The Statistics Department pointed out that with the vigorous development of emerging technology applications such as 5G, artificial intelligence (AI), and high-performance computing (HPC), it has driven relevant supply chains to expand production capacity and invest in equipment, injecting growth momentum into the output value of the equipment industry. Since 2021, the output value has generally shown a growth trend. However, in 2023, due to weak terminal demand, the industry has adjusted inventories, and manufacturers have become more conservative in equipment investment, resulting in an annual decrease in output value of 13.2%.

In 2024, with the steady growth of the global economy, output value will return to the growth track, and the AI ​​wave will push up demand. In 2025, the output value will reach 252.2 billion yuan, a record high, with an annual increase of 20.2%. In the first seven months of this year, the output value will reach 193.4 billion yuan, with an annual increase of 40.1%. It is expected that the output value of the equipment industry will reach new heights this year.

The Census and Statistics Department continued to point out that semiconductor production equipment and components are the main growth momentum of the equipment industry. In recent years, the AI wave has emerged around the world. In addition, my country's semiconductor and server-related supply chains have occupied a core position in the world. The expansion of production capacity and the iterative upgrade of advanced processes have driven semiconductor production, printed circuit board production equipment and components, other electronic production equipment and Components have grown rapidly at an increase rate of more than 40%. Among them, semiconductor production equipment and components accounted for 83.1% of the overall equipment industry output value, an increase of 21.4 percentage points from 2021. Affected by weak demand from the panel industry, flat panel display production equipment and components will have an annual output value of 35.6% in 2025, and continued to decrease by 11.3% in the first seven months of this year.

In terms of domestic sales of equipment, the proportion will exceed 60% for the first time in 2025. The Statistics Office pointed out that as domestic manufacturers accelerate technological upgrades and improve their self-made capabilities, coupled with my country's highly collaborative semiconductor ecosystem, international equipment manufacturers are attracted to continue to deepen their investment layout in Taiwan and invest in domestic equipment supply capacity. The proportion of sales of machinery and equipment used in electronics and semiconductor production within the industry has gradually increased. In 2025, the proportion exceeded 60% for the first time, an increase of 10.5 percentage points from 50.3% in 2021. Import dependence has also gradually declined, from 88.9% in 2021 to 85.2% in 2025.

In terms of exports, the Statistics Department pointed out that the equipment industry's exports in the first eight months of this year were US$2.628 billion, an annual increase of 44.7%. Looking at export regions, exports to ASEAN in the first eight months of this year increased by 109.1%, accounting for 37.7%, surpassing China and Hong Kong, ranking first. China and Hong Kong were affected by the U.S.-China technology war, and manufacturers gradually moved their production bases back to China or expanded production bases outside China. As a result, in the first eight months of this year, the ranking dropped to 33.3%.