FX.co ★ Taiwan Manufacturing Expands Most Since 2021

The S&P Global Taiwan Manufacturing PMI climbed to 56.7 in September 2026 from 54.7 in August, reaching its highest level since August 2021. Output and new orders expanded at their fastest pace in more than five years, underpinned by stronger domestic and external demand, especially for AI-related products. Export orders grew at the quickest rate since July 2021.

Employment increased only modestly, though the pace of job creation was the strongest since February, while outstanding business accumulated rapidly. Purchasing activity accelerated, but supplier shortages contributed to a more pronounced lengthening of delivery times.

Input cost inflation picked up to one of its highest rates since early 2022, reflecting rising prices for raw materials, including metals and AI-related hardware. In turn, output price inflation quickened to its fastest pace since June. Business confidence improved to its highest level since February, supported by expectations of sustained demand, particularly for AI-related products.