Industrial production rises for 18th straight month in July

Taipei, Aug. 23 (CNA) Taiwan's industrial production continued to receive a boost from solid global demand for both tech and old economy products, rising for the 18th consecutive month in July, despite the global spread of the Delta variant, the Ministry of Economic Affairs said (MOEA) said Monday.

Data compiled by the MOEA showed the industrial production index rose 13.93 percent from a year earlier to 133.39 in July, after an 18 percent year-on-year increase from May to June. However, the July figure was down 1.12 percent from a month earlier.

MOEA Department of Statistics deputy chief Huang Wei-chieh (黃偉傑) told reporters that the local electronics sector continues to ride the growing popularity of emerging technologies and a booming stay-at-home economy amid COVID-19.

At the same time, the old economy sector largely benefited from a recovery in raw material prices as international crude oil prices have spiked.

As a result, Huang said, many export-oriented manufacturers continued to benefit from the uptrend in July as the rapid spread of the Delta variant infection did not affect demand.

In July, the sub-index of the manufacturing sector, which accounts for more than 90 percent of Taiwan's total industrial production, rose 15.02 percent from a year earlier to 134.34 in July, the MOEA said, though the July sub-index fell 1.90 percent on a month-on-month basis.

In the first seven months of this year, the industrial production index rose 14.46 percent from a year earlier with the sub-index for the manufacturing sector up 15.48 percent, the MOEA said.

MOEA data showed production generated by the electronic components industry rose 16.80 percent, marking the 20th straight month of double-digit increases, led by semiconductor firms which reported 16.30 percent year-on-year growth in production on the back of emerging technologies such as 5G applications, high performance computing devices, the Internet of Things and automotive electronics.

The computer and optoelectronics industry reported a 5.10 percent year-on-year increase in production in July as exporters intensified efforts at launching new products such as auto electronic controllers, global positioning systems and virtual reality gadgets, the MOEA said.

However, production growth in the industry was compromised by notebook computer makers who faced a lack of raw materials for production, the MOEA added.

Production generated by the chemical raw material industry rose 11.73 percent on the back of rising global demand for petrochemical items, while base metal and machinery firms also saw solid demand, generating 28.79 percent and 29.02 percent year-on-year growth in production, respectively, in July, the data showed.

In July, the auto and auto parts industry posted a 22.06 percent year-on-year increase in production on the back of rising car sales in Taiwan, and an increase in auto parts exports to the U.S. and European markets, the data indicated.

Huang said strong global demand is expected to continue into August as a survey showed many local exporters expect an increase in shipments from a month earlier.

Under such favorable circumstances, Huang said, production in the manufacturing sector is expected to rise by 12.4-14.6 percent from a year earlier in August.