According to a report by Taiwan's "China Times" on the 23rd, the Statistics Department of Taiwan's economic affairs authority released the December 2023 industrial production index, which as expected recorded a "19th consecutive decline." Summarizing 2023's industrial production performance, it fell 12% year-on-year, not only marking two consecutive years of decline but also the first double-digit drop.

　　Taiwan's industrial production index began negative growth in June 2022; in December 2023 the industrial production index stood at 90.4, a year-on-year decline of 3.9%, marking 19 consecutive months of decline.

　　"Throughout 2023, economic performance was poor!" said Huang Weijie, deputy director of the Statistics Department of Taiwan's economic affairs authority, noting that manufacturers first had to destock, which naturally reduced industrial production momentum. For the full year, all six major manufacturing sectors were in "the red," with the electronic components industry and the machinery and equipment industry both posting year-on-year declines exceeding 17%, making them the two weakest-performing industries, while the computers and electronic products (optical products) industry edged down less than 0.2%, coming closest to flat.

　　Huang Weijie explained that last year the electronic components industry was hit by continued declines in output from wafer foundries and IC substrates. The machinery industry faced weak global economic conditions and conservative corporate willingness to invest in equipment, causing manufacturers' orders to fall.

　　The Taiwan Research Institute (TRI) released the December electricity prosperity index (EPI) on the 23rd, showing that electricity consumption by Taiwan industries at high voltage and above grew 0.16% year-on-year, marking two consecutive months of positive growth. TRI analyzed that strong demand from emerging AI applications and supply chain inventories gradually returning to healthy levels boosted industrial electricity demand, semiconductor capacity utilization recovered, and the overall industrial electricity prosperity signal turned from a yellow-blue light to a stable-growth green light for the first time in 2023.

　　TRI noted that looking ahead to 2024, the upward trend from the bottom of the industrial cycle should continue; however, the ** quarter is the off-season for the electronics industry, and with international uncertainty risks still high, industry developments will need continued attention.