Electronics production growth accelerated across major manufacturing economies in 2026, with demand for AI infrastructure driving particularly rapid expansion in Taiwan, according to an analysis published on 22 October by Semiconductor Intelligence . The expansion contrasts with falling PC and smartphone shipments as the AI boom puts pressure on memory supply and pricing. Electronics production growth led by Taiwan Semiconductor Intelligence measures production using the three-month average change compared with the same period a year earlier, smoothing monthly fluctuations. Taiwanese electronics output rose by more than 100% year-on-year during much of 2026. The consultancy attributes much of this increase to NVIDIA AI modules: TSMC manufactures the integrated circuits, while other Taiwanese companies assemble them into modules. Japan moved from a 1.5% year-on-year contraction in January to 17.6% growth in August. Across the EU27, production shifted from a 10.5% decline in January to 16.9% growth in July. US electronics production rose 8.1% in August on the same three-month-average measure, extending an acceleration that began in October 2025. Other Asian manufacturing economies also recorded substantial increases. In August, electronics production was up 71% in Thailand, 40% in Vietnam, 22% in Malaysia, 18% in South Korea and 17% in China. India’s figure reached 14% in July. These national growth rates should not be confused with an overall global growth estimate. AI memory demand squeezes consumer devices The strength in manufacturing is unevenly distributed. Citing IDC data, Semiconductor Intelligence reports that worldwide PC shipments fell by about 20% year-on-year in the third quarter of 2026, while smartphone shipments declined by 22%. It puts the increase in memory costs over the year to the third quarter at 350%, reflecting heavy demand for DRAM and flash memory. IDC has forecast an 11.3% contraction in PC shipments for 2026. Semiconductor Intelligence also cites a 13.9% expected fall in smartphone shipments. As eeNews Europe previously reported on rising mobile DRAM prices , higher component costs have forced handset manufacturers to reconsider production plans, particularly for lower-priced devices. The wider production outlook remains positive. In its August electronics and ICT industry outlook , Atradius projected worldwide output growth of 11% in 2026 and 7.3% in 2027. This global forecast covers a broader industry measure than the national production series analysed by Semiconductor Intelligence. The post Electronics production growth accelerates on AI demand appeared first on eeNews Europe .