Industrial production up for 4th straight month in June

Taipei, July 23 (CNA) Taiwan's industrial production rose more than 13 percent from a year earlier in June, marking the fourth consecutive monthly year-on-year increase, on solid demand for emerging technologies such as artificial intelligence applications, high performance computing (HPC) devices and cloud services, the Ministry of Economic Affairs (MOEA) said Tuesday.

Data compiled by the MOEA showed the country's industrial production index rose 13.23 percent from a year earlier to 94.09 in June after a 15.73 percent year-on-year rise in May.

The sub-index for the manufacturing sector, which accounts for more than 90 percent of total industrial production, also rose 13.50 percent from a year earlier to 93.34 in June.

In the second quarter of this year, Taiwan's industrial production index rose 14.48 percent from a year earlier to 93.20 with the sub-index for the manufacturing sector up 14.86 percent at 92.75, the data indicated.

According to the MOEA, the country's industrial production index rose 10.26 percent from a year earlier to 90.40 in the first half of this year, with the sub-index for the manufacturing sector up 10.51 percent at 90.01.

In June, the local electronic components industry benefited from a boom in HPC devices and AI applications, which boosted shipments in chips and main boards, with production soaring 23.05 percent from a year earlier, the MOEA said.

In the first half of this year, production in the electronic components industry rose 17.88 percent from a year earlier, the MOEA added.

The computer and optoelectronics industry posted a 36.07 percent year-on-year increase in production in June, largely on the back of solid demand for AI and cloud applications, the MOEA said.

Production in the computer and optoelectronics industry rose 25.88 percent from a year earlier in the first half of this year, the ministry added.

The major old economy industries largely reported an improvement in production in June at a time of a global economic recovery, according to the MOEA.

Production generated by the base metal industry rose 2.54 percent from a year earlier in June as clients started to rebuild inventories, while a relatively low comparison base also cited as a factor boosting growth, the MOEA said.

The machinery industry saw production rising 3.28 percent from a year earlier in June, with semiconductor suppliers keen to buy equipment for production expansion, the MOEA added.

In addition, the chemical material and fertilizer industry also reported a 5.82 percent year-on-year increase in production due to rising demand from downstream plastics and rubber clients, the ministry said.

In the first six months of the year, production in the base metal, machinery and chemical material industries rose 1.07 percent, 0.57 percent and 0.96 percent, respectively, the MOEA added.

Bucking the upturn, the auto and auto parts industry suffered an 8.15 percent year-on-year decline in production in June with demand for small fuel powered passenger cars falling, the ministry said.

In the first six months of the year, production posted by the auto and auto parts industry dropped 2.54 percent from a year earlier, the ministry added.

Looking ahead, the MOEA said the global economy will remain haunted by high inflation and interest rates, while escalating trade tensions between the United States and China and rising geopolitical unease are expected to play a negative role.

The silver lining is that Taiwan will continue to ride the wave of emerging technologies to push up production in the manufacturing sector, the MOEA said.