Data: SHFE, DCE market movement (May 25)

The production ramp-up at Taiwan Semiconductor Manufacturing Co. is expected to be positive for Taiwanese steelmakers. As semiconductor capacity continues to expand, related construction demand for plants, equipment support, and ancillary facilities is also expected to grow, providing support for steel consumption in Taiwan. The view suggests semiconductor expansion is increasingly seen as a structural positive for the island’s steel demand.

A representative from the Philippine Iron and Steel Institute said AI projects will directly require infrastructure, and infrastructure development in turn requires steel. Market attention is also focused on the US-led Pax Silica initiative, which plans to build a 4,000-acre industrial hub in the Philippines to support AI, semiconductor, and critical minerals supply chains. The project is seen as a potential catalyst for stronger industrial investment and steel demand in the country.