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Manufacturing fixed asset spending rises 14.5% in first quarter on AI hardware demand
Jun. 10, 2026 20:55
Factory interior. (CNA photo)
TAIPEI (Taiwan News) — AI-related demand pushed Taiwan manufacturers to raise investment in the first quarter, led by semiconductor and other electronics firms adding capacity for next-generation production.
Manufacturers bought NT$700 billion (US$22 billion) in domestic fixed assets from January to March, up 14.5% from a year earlier and 1.3% from the previous quarter, while revenue including overseas production reached NT$9.7 trillion, up 19.4%, per CNA.
Semiconductor-related categories carried the quarter. Fixed asset purchases in electronic components reached NT$545.3 billion after a 20.1% annual gain, giving the sector 77.9% of all manufacturing investment. The increase reflected capacity additions by chip foundries and back-end semiconductor firms working on advanced-node production and packaging, according to the report.
Adjacent hardware sectors also added spending. Computer, electronic, and optical product makers invested NT$18.7 billion, a 20.2% increase, after demand for cloud services led server manufacturers and semiconductor testing equipment firms to add factory space and production lines. Green energy, grid upgrades, and AI data centers supported a 14.9% rise in electrical equipment purchases to NT$10.7 billion, per the report.
Beyond electronics, fabricated metal products investment reached NT$12.5 billion, up 5.3%, as demand from semiconductor, automotive, and aerospace customers supported new factories and added capacity. Petroleum and coal products spending rose 45.1% to NT$17.1 billion, with state-run construction projects and energy transition investment behind the increase.
Other industries pulled back. Machinery equipment purchases fell 19.8% to NT$8.6 billion after some expansion work ended or new plants moved into operation, CNA reported. Chemical materials and fertilizers slipped 7.1% to NT$22.2 billion as industrial chemical projects wound down, while basic metals fell 38.6% to NT$9.7 billion against a high base from last year’s steel-sector upgrade and energy-saving spending.
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Taiwan News, Staff Writer
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