‘UPWARD SPIRAL’:Manufacturing output, the powerhouse of Taiwan’s industrial sector has pushed through to its 18th consecutive month of annual growth, although lower than forecast.
Industrial production last month rose 2.85 percent year-on-year for the sixth consecutive month as the launch of Apple Inc’s new iPhone series boosted demand for advanced chips and electronic components, the Ministry of Economic Affairs said yesterday.
Manufacturing output, a pillar of the nation’s industrial output, last month grew 3.1 percent year-on-year, the ministry said.
The increase represented the 18th consecutive month of annual growth, but was lower than the ministry’s 4 percent growth forecast.
“The 18-month upward spiral reflects strong demand from overseas during the electronics industry’s peak season. It also indicates that people are more willing to spend on electronics amid a continuing recovery in the global economy,” Department of Statistics Deputy Director-General Wang Shu-chuan said.
“Last month, the launch of the new iPhone X helped bring the electronic components segment back to positive territory,” he said.
The output of the electronic components segment grew 7.63 percent last month from the previous year, reversing an annual contraction of 1.68 percent in September.
Among the four categories of the electronic components segment, the output of semiconductors grew the most at an annual pace of 10.23 percent as Taiwan Semiconductor Manufacturing Co (TSMC) beat Samsung Electronics Co to be the sole chip supplier for the latest iPhones, while the flat-panel segment came next with annual growth of 4.33 percent.
The effect of the new smartphone, along with holiday shopping demand from China, the US and Europe, would help extend the momentum into this month, the ministry said.
The growth would provide a cushion against weakness in the petrochemical and steel sectors, as some manufacturers are scheduled to shut down factories for annual maintenance, the ministry said.
The petrochemical and steel sectors are the second and third-highest contributors to the manufacturing sector.
Overall, the manufacturing sector this month is to hold steady from last month, the ministry forecast.
Wang is optimistic about the manufacturing sector for the whole of this year, she said.
“We believe that there is a good chance for the sector to climb to an historical high in light of the uptrend,” she said.
In the first 10 months of this year, manufacturing output increased 4.29 percent annually, the ministry’s data showed.
In a separate release, the ministry said that revenue in the wholesale sector last month rose 3.9 percent year-on-year to NT$859.7 billion (US$28.65 billion) as the smartphone industry enters its peak season.
Meanwhile, rising demand for data centers helped boost sales of memory chips and microprocessors.
Retail revenue increased 3.2 percent annually to US$368.1 billion last month, as shopping malls and department stores launched anniversary promotions to spur sales, causing their sales to jump 6.5 percent to NT$116.6 billion.
Revenue from restaurants rose 2.9 percent to NT$38.4 billion last month, hitting an historical high, as people dined out more to celebrate the Mid-Autumn Festival and Double Ten National Day holidays.
Revenue in the wholesale and retail sectors is expected to see additional annual growth this month, the ministry said. |
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