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Manufacturing output in Taiwan down over 10% in 2015

2016/03/26 15:28:55

Taipei, March 26 (CNA) The production value of Taiwan's manufacturing sector fell by more than 10 percent in 2015 from the previous year, reversing a year-on-year increase of 3.59 percent recorded a year earlier, amid declining global demand, according to the Ministry of Economic Affairs (MOEA).

Citing data, the MOEA said that output of the local manufacturing sector totaled NT$12.86 trillion last year, down NT$1.56 trillion or 10.84 percent from a year earlier.

The year-on-year decline in output value was the second steepest decline after a NT$2.53 trillion drop seen in 2009.

In terms of percentages, the year-on-year drop for 2015 was the third steepest after a 19.08 percent fall in 2009 and a 12.60 percent decline in 2001.

The MOEA said that falling international crude oil prices had hurt the pricing power of raw material suppliers. As a result, the output of oil/coal and chemical industries fell 33.65 percent and 20.13 percent, respectively, to NT$835 billion and NT$1.66 trillion last year, the data showed.

Meanwhile, the production value of the base metal segment shrank 20.45 percent from a year earlier to NT$1.23 trillion in the wake of the weakness in the global steel market, which was impacted by a supply glut, the statistics indicated.

Bucking the downturn suffered by the entire manufacturing industry, the MOEA said, the semiconductor segment reported a new high in production value, which totaled NT$1.17 trillion, up 6.17 percent from a year earlier.

The sector benefited from an increase in demand for smart devices and its advanced technology helped it secure more orders to reduce the impact from global inventory adjustments seen in the second half of last year, the MOEA said.

The computer peripheral segment also outperformed the overall manufacturing sector, recording a 17.57 percent year-on-year increase in output which hit a record high of NT$134 billion, the MOEA added.

In addition, other industries such as bicycles, machinery installation and maintenance, glass and cosmetics also recorded a high in production value last year, the ministry said.

Since the pace of the global economy remains wobbly, the MOEA said, it is possible that output of Taiwan's manufacturing sector will not return to a path of growth until the third quarter of this year.

(By Huang Chiao-wen and Frances Huang)