Report published September 23, 2026

Taiwan: Pullback in AI-Related Production in August – Goldman Sachs Economic Research

Goldman Sachs · September 23, 2026

Taiwan's industrial production dropped 0.5% mom sa in August, weaker than expected, after five months of gains. The decline was led by a 7.8% pullback in AI-driven computer and optical products, though domestic consumption indicators rebounded.

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Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Taiwan's August industrial production fell 0.5% month-on-month seasonally adjusted, ending five consecutive months of increases and missing consensus.
2.Tech production contracted 0.6% mom sa due to a sharp 7.8% drop in computers, electronic, and optical products (driven by AI-related demand), though electronic components remained up 1.9%.
3.Domestic consumption indicators showed resilience in August, with retail sales rising 0.6% mom sa and food/beverage services growing 1.3%.

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Report data

Exhibit 1: Pullback in production of computers, electronic and optical products in August

Metric	Estimate	Context
Industrial Production Growth (YoY)	23.5%	Weaker than Bloomberg consensus of +26.7% yoy and GS forecast of 28.0% yoy; previous was 25.6% yoy
Industrial Production Growth (MoM SA)	-0.5%	First contraction after five consecutive months of increases, seasonally adjusted by GS
Tech Production Growth (MoM SA)	-0.6%	Down from a 2.3% expansion in July
Computers, Electronic, and Optical Products Production (MoM SA)	-7.8%	Sharp pullback driven mainly by AI-related demand
Electronic Components Production Growth	1.9%	Partly offset the losses in computers and optical products