Industrial production up for the 28th consecutive month in May
Taipei, June 25 (CNA) Taiwan’s industrial output in May rose more than 4% from a year earlier, marking the 28th consecutive month of a year-on-year increase on demand robust world of semiconductors, according to the ministry. Economic Affairs (MOEA).
Data compiled by the MOEA showed the industrial production index rose 4.48% from a year earlier to 135.28 in May, the sub-index for manufacturing, which accounts for more than 90% of the country’s total industrial production, increasing by 5.14%. from a year earlier at 137.46, also marking the sub-index’s 28th consecutive month of year-over-year increases.
On a month-to-month basis, May industrial production also increased by 2.81% and the manufacturing sector sub-index increased by 2.57% compared to the previous year, while after seasonal adjustments, production May industrial and manufacturing sector output trended down 0.71% and 0.52%, respectively, according to the data.
In the first five months of this year, industrial production rose 6.06% from a year earlier, while the manufacturing sector sub-index rose 6.31% year-on-year, according to the MOEA.
Huang Wei-chieh (黃偉傑), deputy director of the MOEA’s Statistics Department, said an increase in the popularity of emerging technologies, such as 5G applications, high-performance computing devices and automotive electronics, continues to drive increase the demand for semiconductors.
In addition, digital transformation in many enterprises has further boosted local semiconductor industry output, Huang said.
In May, output generated by semiconductor makers in Taiwan rose 22.50 percent year-on-year, serving as a driver for the electronic components industry, whose output rose 14.17 % over the previous year, the MOEA said.
However, output from flat panel display vendors fell 19.83% from a year earlier in May, offsetting growth in the electronic components industry as demand for displays showed signs of weakening, added the MOEA.
The MOEA said output in the computer and optoelectronics industry rose 3.76 percent year-on-year in May due to strong demand for internet equipment and devices used in cloud services. and data centers.
Huang said the growth showed the impact of a component supply shortage had eased somewhat.
However, the old-economy sector is still feeling the pinch of the impact of China’s COVID-19 lockdowns in many of its industrial cities such as Shanghai, and saw output weaken in May, Huang said.
Huang said annual maintenance by several old-economy industries also affected their output in the month.
In May, production in the chemical materials, basic metals and machinery industries fell 6.67%, 3.84% and 1.23%, respectively, from a year earlier, data showed. MOEA.
The auto and auto parts industry reported a 16.17% year-on-year drop in output in May, as lockdowns in China reduced component supply and a rise in domestic COVID-19 cases in Taiwan has hurt buyers’ interest in the local auto market, the data shows.
Looking ahead, Huang said Taiwan’s overseas sales are expected to benefit from China’s easing of lockdowns and many other major economies’ easing of border controls, while technologies emerging markets should strengthen the local semiconductor industry, which has continued to increase production.
In June, the local manufacturing production sub-index is expected to rise by up to 3 percent from a year earlier to range from 137.16 to 141.16, Huang said.
However, uncertainties, including geopolitical tensions and soaring inflation around the world, could harm the global economy and, in turn, affect Taiwan’s output, he added.