Taiwan and South Korea's Manufacturing Sectors Show Signs of Recovery

S&P Global Market Intelligence has released the December 2024 Purchasing Managers Indexes (PMIs), indicating a positive shift in factory activity across major Asian economies. Notably, Taiwan TWand South Korea KR, two of the world's leading semiconductor manufacturers, have surpassed the critical 50-point growth threshold for the first time in several months, signaling a reversal from previous contraction trends.

Taiwan's manufacturing PMI rose to 50.9 in December from 48.8 in November, marking the first time it has been above 50 in ten months. This improvement is attributed to increased export orders and new product launches, as manufacturers in Taiwan expressed stronger optimism about future output. Taiwan's manufacturing sector, including giants like Taiwan Semiconductor Manufacturing Company TSMC, has benefited from a booming artificial intelligence market, further boosting production and inventory levels.