Taiwan's industrial production rises for 11th straight month

Taipei, Feb. 24 (CNA) Taiwan's industrial production in January received a boost from strong global demand for emerging technologies, rising by more than 5 percent from a year earlier, marking the 11th consecutive month of year-on-year growth, the Ministry of Economic Affairs (MOEA) said on Tuesday.

Data compiled by the MOEA showed the industrial production index rose 5.07 percent from a year earlier to 96.31, while the sub-index for the manufacturing sector, which accounts for more than 90 percent of the total index, rose 5.29 percent year-on-year to 96.4.

In January, production posted by the electronic components industry rose 16.67 percent to 106.09, with output generated by integrated circuit suppliers up 22.92 percent, reaching 120.01, the highest ever for January.

That was due to the solid global demand for high-performance computing (HPC) devices and artificial intelligence (AI) applications which boosted 12-inch wafer production and IC/wafer testing services, according to the ministry.

However, production in the flat panel-making sector fell 6.31 percent from a year earlier to 50.49 in January, due mainly to the reduced number of working days caused by the Lunar New Year holiday in the month, Huang Wei-jie (黃偉傑), deputy head of the MOEA's Department of Statistics, said during a news conference on Tuesday.

Production in the computer and optoelectronics industry rose 14.78 percent from a year earlier, to hit 131.65, the highest ever for January.

Huang attributed the increase to a significant ramp-up in server production capacity as manufacturers worked overtime during the Lunar New Year holiday to meet demand.

Meanwhile, production by old-economy industries was weak in January, with the base metal industry posting a 14.82 percent year-on-year decline, Huang said.

In addition, production posted by the chemical material and fertilizer sector and the machinery equipment industry moved lower by 7.08 percent and 2.10 percent year-on-year, respectively.

The auto and auto parts industry reported a 27.2 percent year-on-year slump in production due mainly to the reduced number of working days in the month.

Huang said that the declines in production by old-economy industries moderated in January but it was too soon to determine when it will return to growth.

In January, the industrial and manufacturing production indexes both reached the second-highest for January, and posted positive growth for 11 consecutive months, Huang noted, adding that the growth trend is expected to continue in February.

Looking ahead, Huang said that the manufacturing production sub-index in February is expected to be between 92.46 and 96.46, an annual increase of 18.6 percent to 23.7 percent.

The manufacturing production index in the first two months is expected to be between 94.43 and 96.43, an annual increase of 11.4 percent to 13.8 percent, he added.

Huang also said that uncertain factors such as trade tariffs and geopolitical conflicts have affected the pace of global economic growth, but the continued demand for emerging technologies such as AI applications and HPC, coupled with robust demand for high-end semiconductor processes and servers are expected to drive steady growth in Taiwan's manufacturing production.