Taiwan July IP Strong Tech Production And Weak Retail Sales

Economics Research 25 August 2026 | 7:56PM KST

Taiwan: July IP—Strong Tech Production And Weak Retail Sales

Bottom line: Irene Choi | Goldman Sachs (Asia) L.L.C., Seoul Taiwan’s industrial production (IP) rose 2.9% mom sa in July, sustaining robust pace Branch

of increase after rising 3.4% the prior month. The outcome was stronger than Goohoon Kwon, CFA | consensus as well as our forecast. Tech production gained 3.4% and accounted for Goldman Sachs (Asia) L.L.C. roughly three-fourths of the headline sequential increase, helped by acceleration in AI-related production. In contrast, retail sales fell 0.7% mom sa, pulling back after six months of gains, while sales of food and beverage services contracted for the second month, by 2.1%.

July IP growth: +25.6% year-on-year, vs. Bloomberg consensus: +20.7% yoy, vs. GS: 21.0% yoy; Previous: 22.6% yoy

4 out of 5 for relevance to growth.

+2 on a scale of -5 to +5 for surprise relative to consensus.

1. Taiwan’s industrial production (IP) rose 2.9% mom sa in July (seasonally adjusted by GS), sustaining robust pace of increase after rising 3.4% the prior month. In year-on-year terms, growth picked up to 25.6% from 22.6% the prior month. The outcome was stronger than consensus as well as our forecast.

2. Tech production gained 3.4% mom sa (seasonally adjusted by GS), extending an 11-month streak of gains and accounting for roughly three-fourths of the headline sequential increase. The pace of increase for tech production moderated only slightly from 4.0% the prior month, as the deceleration in electronic components (1.5%) was partly offset by an acceleration in computers, electronic and optical products to 7.8% (Exhibit 1). Production of chemicals, metals and machinery also broadly increased.

3. In contrast, retail sales fell 0.7% mom sa (seasonally adjusted by GS), pulling back after six months of continued gains, on normalizing auto sales after a sharp increase the prior month (Exhibit 2). Sales in food and beverage services dropped for the second month, with the pace of contraction almost unchanged from last month at -2.1%. Wholesale trade rose at a slower pace of 1.1%.

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Exhibit 1: AI-related tech production accelerated in July

Index sa (Dec 2022=100) Index sa (Dec 2022=100)

450 450 Taiwan IP by sector 400 400 Electronic components Computers, electronic and optical products (RHS) 350 Chemical materials 350 Basic Metals Machinery and equipment 300 Motor vehicles 300

Source: Ministry of Economic Affairs, Haver Analytics

Exhibit 2: Retail sales and sales in food and beverage services fall in July

Index(sa, Dec 2019=100) Index(sa, Dec 2019=

Total 190 190 Wholesale Retail 170 170 Food and Beverage Services

50 50 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26

Source: Ministry of Economic Affairs, Haver Analytics