Taiwan Economic Indicator Remains at Red Level as AI Demand Accelerates

The Taiwan economic indicator remained at a red level in June for a seventh consecutive month as strong artificial intelligence demand continued to support exports, industrial sales and investment.

The National Development Council said the composite business monitoring score increased by two points from May to 41, marking the second-longest red-level streak on record. Leading and coincident indicators also strengthened.

Demand for semiconductors, chips and servers continued to drive manufacturing output and exports, while investment by Taiwan’s major chipmakers supported capital spending.

The agency said benefits from the AI cycle were spreading beyond the semiconductor industry into machinery and basic metals.

Taiwan’s economic outlook remains resilient, supported by consumer electronics shipments, technology investment and stable domestic consumption.

However, the council warned that geopolitical tensions in the Middle East and possible changes to United States tariff policy could create new risks for trade and manufacturing during the remainder of the year.