Taiwan's manufacturing activity expanded at its fastest pace in four years in
February, despite fewer work days due to the Lunar New Year holiday.

Data released by the Chung-Hua Institution for Economic Research show that
the purchasing managers' index for Taiwan's manufacturing sector rose to 58.5
in February from 57.2 a month earlier.

It's the fifth rise in as many months ... and the highest level since March
2022.

The AI boom is credited with boosting the indicator of manufacturing activity.

In the electronics and optical industries, the non-seasonally adjusted new
orders index and backlog of orders index continued to expand, reaching 56.8
and 59.9, respectively.

A CIER researcher said the data point to strength of demand in the
electronics and optical industries.

An Academia Sinica researcher cautioned that the benefits are uneven as
capacity is diverted from mature processes ... and as material costs rise.

Looking ahead, some experts warned that sharply higher global oil prices as a
result of the US and Israel's war with Iran could slow overall economic
growth.

One noted that the the spillover could indirectly affect the AI industry,
which requires vast amounts of electricity.

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