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Taiwan's manufacturing output returns to growth in Q1

05/20/2024 10:14 PM
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CNA file photo
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Taipei, May 20 (CNA) The production value of Taiwan's manufacturing sector returned to a growth pattern, rising more than 4 percent from a year earlier in the first quarter of this year due to solid demand for emerging technologies, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed that the manufacturing sector posted NT$4.42 trillion (US$137 billion) in output in the January-March period, up 4.56 percent from a year earlier, ending a five-quarter falling streak.

The growth in April was spurred by a strong performance from the high-tech industry as solid global demand for artificial intelligence applications, high performance computing (HPC) devices and cloud-based gadgets pushed up local production value, the MOEA said.

In the first quarter, the output of the electronics component industry rose 11.76 percent from a year earlier to NT$1.40 trillion, which made up about 32 percent of the total production value among manufacturers in Taiwan, the MOEA said.

In the electronics component industry, the MOEA said, semiconductor suppliers were the largest beneficiaries of the booming emerging technologies, generating NT$889 billion in output, up 14.06 percent from a year earlier due to an increase in 12-inch chip production among pure play wafer foundry operators.

Also in the industry, flat panel and parts suppliers got a boost from an increase in large-sized panel prices as well as a relatively low comparison base, posting NT$118.1 billion in output in the first quarter, up 9.99 percent from a year earlier, the MOEA said.

In the old economy sector, the production value of select industries also went up compared to a year earlier with the base metal industry posting NT$385 billion in output in the first quarter, up 1 percent from a year earlier largely on an increase in steel product production and a low comparison base, according to the MOEA.

The production value generated by the auto and auto parts industry edged up 0.99 percent from a year earlier to NT$122.1 billion in the wake of a rise in car orders, while auto parts makers benefited from an increase in orders from the United States and Europe, the MOEA said.

Bucking the upturn, the machinery industry suffered a 2.29 percent year-on-year decline in output with value at NT$202.5 billion as a slow pace in a global economic recovery capped investments by manufacturers in expansion, the MOEA added.

The ministry said the high-tech industry is expected to continue to add momentum to the local manufacturing sector in the future due to strong demand for emerging technologies.

But the MOEA warned uncertainties such as high interest rates, sticky inflation, escalating trade tensions between Washington and Beijing and growing geopolitical unease are expected to affect global demand.

(By Liu Chien-ling and Frances Huang)

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