Industrial production up for 8th straight month in September

10/23/2020 08:05 PM
To activate the text-to-speech service, please first agree to the privacy policy below.
CNA file photo
CNA file photo

Taipei, Oct. 23 (CNA) Taiwan's industrial production rose from a year earlier for the eighth consecutive month in September largely on the back of strong demand for tech devices, the Ministry of Economic Affairs (MOEA) said Friday.

Data compiled by the MOEA showed that the local industrial production index for September rose 10.73 percent from a year earlier to a new high of 122.74, while the sub-index for the manufacturing sector, which accounts for more than 90 percent of the total production, rose 11.32 percent to 123.91.

On a month-on-month basis, industrial production rose 2.51 percent and production posted by Taiwanese manufacturers was also up 3.20 percent, the data indicated.

In the third quarter, Taiwan's industrial production grew 7.99 percent from a quarter earlier, with production generated by the manufacturing sector up 7.87 percent sequentially, the MOEA said.

MOEA Department of Statistics Deputy Chief Huang Wei-chieh (黃偉傑) told reporters that Taiwan's electronics sector got a boost from strong demand for semiconductors from China before the sanctions imposed by Washington on Chinese telecom equipment supplier Huawei Technologies Inc. became effective in mid-September.

Huang said that an increase in orders by international smartphone brands to pave the way for the launch of new models also helped the local tech sector generate more production.

In September, production of the electronic component industry rose 15.72 percent from a year earlier, marking the 10th consecutive month of a double-digit increase, the MOEA said.

The MOEA added that the semiconductor segment in the electronic component industry even posted a 20.02 percent year-on-year increase in production, on the back of rising demand for a wide range of emerging technologies such as 5G applications, high performance computing devices and the Internet of Things (IoT).

Production posted by the computer and optoelectronics industry also rose 21.89 percent from a year earlier in the wake of continued solid demand for online learning and working remotely in a booming stay-at-home economy amid the COVID-19 pandemic, the MOEA said.

In terms of the old economy industries, production posted by base metal makers rose 4.94 percent from a year earlier in September, ending a six-month falling streak as the reopening of many economies increased demand for steel, according to the MOEA.

Production of the machinery industry also rose 10.15 percent from a year earlier in September, stopping a 21-month falling streak on the back of deferred orders from China and rising demand for high-tech applications, which prompted firms to install new equipment, the MOEA said.

However, production in the oil and coal industry fell 14.27 percent from a year earlier, the MOEA said, as COVID-19 continued to affect global demand for oil products, while production in the auto and auto parts industry rose 5.81 percent, largely on the back of domestic car sales.

Looking ahead, Huang said, a year-end buying spree in the U.S. and European markets is expected to continue to prop up global demand, while the debut of new consumer electronics is likely to give additional support.

Under such favorable circumstances, Taiwan's manufacturing sector is expected to post strong production for the rest of the year, Huang said.

Since October has several public holidays, which cuts short the number of working days, Huang said, the local manufacturing sector could see its production compromised compared with September.

In the first nine months of this year, Taiwan's industrial production rose 6.29 percent from a year earlier, with production in the manufacturing sector up 6.74 percent, according to the MOEA.

(By Liang Pei-chih and Frances Huang)

Enditem/J

    0:00
    /
    0:00
    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.