Components, Electronics Production Surging in Taiwan
TAIPEI – Taiwan’s Ministry of Economic Affairs announced the domestic electronic components production index hit a new high in July, ahead of the coming peak season for consumer electronics.
The electronic components production index was 154, up 23% year-over-year. The IC production index was 175, up 27%, while the computer, electronic products, and optical products production index was 458, up 96%.
The second half is the peak season for consumer electronics production, but July’s manufacturing data showed no significant order buying surge yet. AI servers continue to drive manufacturing growth.
Machinery equipment sales grew 19.8% year-over-year in July and basic metals sales rose 13.2%. Chemical materials and automotive and parts segments were hit by weak market demand momentum and inventory reduction, falling 5.9% and 5%, respectively.
The August production index is expected to rise sequentially, and the manufacturing production index is projected to range between 149.5 and 153.5, a year-over-year increase of 26% to 29%. (Source: Central News Agency).
Quick Hits
North American PCB bookings jumped 62% year-over-year in July and rose 28% sequentially, bringing year-to-date bookings up 33%. Shipments increased from a year ago and 19.8% sequentially, while year-to-date shipments climbed 13%. (GEA)
India approved 106 new electronics parts manufacturing projects under its Electronics Components Manufacturing Scheme (ECMS) program, projected to create 75,000 jobs. (India Union Electronics and Information Technology)
Bare PCB prices are climbing as AI-driven chip demand collides with fallout from the Iran war. (Bureau of Labor Statistics)
Major global cloud service providers (CSPs) are accelerating AI infrastructure investment, with total CapEx projected to surge 98% year-over-year in 2026 and rise another 50% in 2027. (TrendForce)
North American electronics manufacturing services bookings surged 44% year-over-year in July and jumped 76% from June. Year-to-date bookings are up 11%. Shipments declined 0.3% year-over-year and fell 5.8% sequentially. Despite the July decline, year-to-date shipments remained 6.2% above the prior-year period. (GEA)
Global IT spending is forecast to reach $6.4 trillion this year, a 14 percent increase over 2025. (Gartner)
First half shipments of flexible OLED panels for smartphones increased 16% year-over-year to 350 million units, an increase of about 47 million units. (Sigmaintell)
Chinese smartphone vendors reported second quarter shipments fell to 130.5 million units, down 13 percent from the prior quarter and 26 percent from a year earlier. (DigiTimes)
Global authorized distribution grew 12.6% in 2025, with Asia expanding its share 240 basis points to 76%, while Americas companies grew 6% and European companies fell 4.9%. (ECIA)
ECIA released its annual Top 50 Worldwide Authorized Distributors study. (ECIA)
Taiwanese tech suppliers are increasingly targeting satellites, space computing, and optical technologies as potential growth markets. (Nikkei Asia)
PCB prices will rise as much as 50% in Q3. (Board Channels)
The Department of Commerce will provide $874 million in Chips Act funding to seven US companies developing semiconductor technologies for AI and advanced computing systems. (Department of Commerce)
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