New smartphones push up Taiwan’s manufacturing output by over 3.7% in Q3

With the launches of new smartphones by international brands, the production value of Taiwan’s exports-oriented manufacturing sector rose by more than 3.7 percent from a year earlier in the third quarter of this year, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA’s statistics department showed the output of the local manufacturing sector hit NT$4.36 trillion (US$140 billion), up 3.75 percent from a year earlier. The rise in production came as multinational brands launched new handheld devices.

Market analysts attributed the debut of the latest iPhone 14 series by Apple Inc. to the growth, as many manufacturers including contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) and contract electronics producer Hon Hai Precision Industry Co. are among the suppliers for the U.S. consumer electronics giant’s supply chain.

The MOEA, however, said the third quarter production value fell below the NT$4.51 trillion seen in the second quarter due to weakening demand for raw materials as well as cuts in production by chemical material and steel makers.

Production value is dictated by product prices, while the production index, which refers to production volume, rose 0.13 percent from a year earlier to the third quarter high of 138.29, according to the MOEA.

Taking a closer look, the output of the electronics component industry hit a new high of NT$1.39 trillion in the July-September period, up 11.90 percent from a year earlier, driving up the entire production value of the manufacturing sector, the MOEA said.

Emerging technologies, such as high-performance computing devices and automotive electronics, also pushed up the output of semiconductor suppliers in the electronics component industry by 43.83 percent from a year earlier to NT$784.6 billion in the third quarter, the MOEA said.

However, flat panel makers, also in the electronics component sector, continued to see product prices fall, dragging down their production value by 54.58 percent from a year earlier to NT$110.6 billion in the third quarter, the MOEA said.

In the same three-month period, the output of the computer and optoelectronics industry rose 26.54 percent from a year earlier to a new high of NT$301.5 billion on the back of strong demand for devices used in data centers as well as other gadgets such as servers, converters and routers, according to the MOEA.

The old economy industries, meanwhile, felt the pinch from weakening global demand with the production value of chemical materials and base metal suppliers falling 18.54 percent and 19.31 percent, respectively, from a year earlier to NT$427.5 billion and NT$407.9 billion, the MOEA’s data showed.

The production value of the oil and coal industry soared 47.52 percent from a year earlier to NT$317.3 billion in the third quarter in the wake of a spike in international crude oil prices, while the machinery industry got a boost from strong demand for automation and production expansion by semiconductor suppliers, and reported a new high of NT$209.6 billion in output, up 3.41 percent from a year earlier.

At the same time, the auto and auto-parts industry benefited from an increase in car sales, which pushed up its production value by 11.76 percent from a year earlier to NT$105.0 billion, according to the MOEA.

In the first nine months of this year, the output of the local manufacturing sector rose 10.80 percent from a year earlier to NT$13.03 trillion, the MOEA said.


Source: Focus Taiwan News Channel