Taiwan's factories are booming, with growth at its fastest pace since 2021 — good news for exporters, especially electronics makers riding the AI hardware wave.

• The manufacturing index climbed for an 11th straight month and hit its highest reading in five years.
• All six major manufacturing sectors grew, led by electronics and optical firms, then electrical and machinery equipment.
• Factories expect the good times to last, with six-month outlooks staying strongly positive for the eighth month running.
• The service side is still growing but losing steam, slipping for the month even after 18 months of expansion.
• Transport equipment is the weak spot — it barely grew and is the only sector expecting a slowdown ahead.

Outlook: Manufacturing should keep expanding into the autumn on strong electronics demand, while services growth cools further.