Industrial production rises for 6th straight month in August

Taipei, Sept. 25 (CNA) Taiwan's industrial production rose more than 13 percent in August from a year earlier, marking the sixth consecutive monthly year-on-year increase, the Ministry of Economic Affairs (MOEA) said Wednesday.

The industrial production was boosted by emerging technologies such as artificial intelligence applications and preparatory efforts by international brands for the launch of new consumer electronic devices, the ministry said.

Data released by the MOEA showed the industrial production index for August rose 13.42 percent from a year earlier to 103.27 after a 13.01 increase in July.

The sub-index for the manufacturing sector, which accounts for more than 90 percent of total production, rose 14.07 percent from a year earlier to 102.88, also the sixth straight monthly increase, the data indicated.

The August sub-index for the manufacturing sector beat the MOEA's previous estimate pointing to a range of 93.94 to 97.94 in August, up 4.2-8.6 percent from a year earlier.

In the first eight months of this year, the industrial production index rose 10.98 percent from a year earlier to 92.68 with the sub-index of the manufacturing sector surging 11.36 percent to 92.26, the data showed.

Speaking to reporters, Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics, said Taiwan's export-oriented manufacturing sector continues to receive a boost from the growing popularity of AI, high performance computing (HPC) devices, and cloud services.

The tech sector has entered peak season with many international consumer electronics brands rebuilding their stockpiles in preparation for the debut of new products, Huang added.

In August, production posted by the electronic components industry rose 22.24 percent, with production generated by integrated circuit suppliers up 28.48 percent, as emerging technologies and new tech products pushed up demand for 12-inch wafer foundry services, IC packaging and testing services, motherboards, and printed circuit boards, the MOEA said.

The production sub-index for the IC segment hit a new high of 117.57 in August.

However, production in the flat panel making sector fell 8.52 percent from a year earlier in August to cap gains in the electronic components industry as demand for large-sized TV screens weakened, the MOEA said.

According to the MOEA, the computer and optoelectronics industry saw production soar 42.56 percent from a year earlier in August on the back of an increase in demand for AI and cloud services and international brands preparing to debut new products, which pushed up AI servers, camera lenses used in mobile devices and other communication gadgets.

The 42.56 percent growth was the highest since August 2011, when the index in the computer and optoelectronics industry surged 46.06 percent from a year earlier, the MOEA said.

While the tech sector continued to prosper amid robust global demand, the old economy recovered more slowly as the strength of global economic growth appeared uneven, Huang said.

In August, production posted by the base metal industry fell 4.40 percent from a year earlier due to weaker demand for steel products.

Production generated by the chemical material and fertilizer industry also moved lower by 4.51 percent year-on-year due to the annual maintenance of some Taiwanese firms and a supply glut resulting from increased production in China, the MOEA said.

The ministry said the auto and auto parts industry suffered a 12.87 percent year-on-year decline in production as small sized passenger car sales were squeezed by rising competition from imported cars and electric vehicles, while a decline in auto part exports also contributed to the weakness of the industry.

Bucking the downturn, the machinery industry posted a 3.89 percent year-on-year increase in production, marking the fifth straight month of growth, with semiconductor firms keen to expand by purchasing advanced equipment, the MOEA said.

Growth also reflected a relatively low comparison base over the same period of last year, it added.

Looking ahead, Taiwan's manufacturing sector will continue to ride the wave of current peak season effects in the second half of this year, Huang said, forecasting the sub-index for the sector will range from 97.66 to 101.66 in September, up 10.2-14.7 percent from a year earlier, marking the seventh consecutive month of growth.

However, Huang cautioned lingering geopolitical unease and trade tensions between the United States and China will continue to create uncertainties in the global economy.