Amid the waves of strong global demand for tech gadgets, the production value of the local manufacturing sector hit a new quarterly high in the third quarter of this year, breaching the NT$4 trillion (US$144 billion) level, according to the Ministry of Economic Affairs (MOEA).
The MOEA said as emerging technologies continued to push up demand for tech applications and the prices of raw materials for production was on the rise in the wake of a spike in international crude oil prices, many manufacturers in Taiwan enjoyed robust growth in output in the three-month period.
Data compiled by the MOEA showed the production value of the local manufacturing sector totaled NT$4.19 trillion in the July-September period, up 29.68 percent from a year earlier.
The third quarter figure marked the fourth consecutive quarter of a year-on-year increase, the data indicated.
The strong growth in output coincided with a 13.94 percent year-on-year increase in the sub-index of the manufacturing sector, which accounts for more than 90 percent of the total industrial production in Taiwan, after inflationary adjustments, according to the MOEA.
The MOEA said the output of the information and electronics industry, which makes up about 35.34 percent of total manufacturing output in the third quarter, rose 18.45 percent from a year earlier to NT$1.48 trillion.
In the industry, electronics component suppliers saw their output rising 21 percent from a year earlier to hit NT$1.24 trillion on the back of efforts by international brands to launch their new consumer electronics gadgets as well as solid demand for 5G applications, the Internet of Things and automotive electronics.
Integrated circuit makers and flat panel producers posted 19.71 percent and 25.26 percent, respectively, from a year earlier in the third quarter, according to the MOEA.
The MOEA said the output of the computer and optoelectronics industry also rose 6.68 percent from a year earlier in the third quarter, marking the 14th consecutive quarter of year-on-year growth, due to a rising popularity of storage devices as well as virtual reality gadgets and electronic controllers for car use.
In the third quarter, the production value of the chemical raw material industry soared 66.87 percent from a year earlier, making the fourth consecutive quarter of a year-on-year increase on the back of a higher pricing power among petrochemical suppliers, the MOEA said.
The MOEA said the output of the base metal industry also soared 78.91 percent from a year earlier in the three-month period as steel prices trended higher due to massive infrastructure projects in several major economies.
The MOEA added the production value of the machinery and auto/auto parts industries moved higher by 27.36 percent and 15.04 percent, respectively, from a year earlier in the third quarter.
Looking ahead, the local manufacturing sector is expected to benefit from a global economic recovery, but a COVID-19 variant spreading worldwide and China’s energy crisis could create uncertainty in global demand, the MOEA said.
Source: Focus Taiwan News Channel