Industrial production up for 4th straight month in May

 

Taipei  Taiwan’s industrial production rose year-on-year for the fourth consecutive month in May as solid demand for tech devices assuaged the impact on the old economy sector from the COVID-19 pandemic, the Ministry of Economic Affairs (MOEA) said Tuesday.

Data compiled by the MOEA showed that the May industrial production index rose 1.51 percent from a year earlier to 110.18. The year-on-year growth in May, however, was the slowest of all four months, the data indicated.

The sub-index for the manufacturing sector, which accounts for more than 90 percent of total industrial production, also rose 1.68 percent from a year earlier to 110.44, according to the data.

On a month-on-month basis, the industrial production index rose 1.99 percent and the sub-index for the manufacturing sector also rose 1.16 percent, while after seasonal adjustment, the main index fell 0.90 percent and the sub-index also dropped 1.02 percent, the MOEA said.

In the first five months of this year, the industrial production index rose 6.51 percent from a year earlier, with the sub-index for the manufacturing sector up 7.0 percent, the MOEA added.

The MOEA said production by the electronics component industry rose 22.15 percent from a year earlier in May, marking the sixth consecutive month of double-digit increase, on the back of strong demand for 5G applications and high-performance computing (HPC) devices.

The MOEA added that growing online learning and remote work amid the COVID-19 pandemic also pushed up demand for semiconductors, production of which rose 36.01 percent from a year earlier in May.

With shipments of notebook computers, servers and Internet communication equipment growing for offsite working and learning, production of computers and peripherals and optoelectronics suppliers grew a total of 9.8 percent from a year earlier in May, the MOEA said.

Non-tech industries however, felt the pinch of COVID-19, the MOEA said. In the wake of a fall in international crude oil prices, production of oil and coal products fell 28.17 percent from a year earlier in May and output of chemical materials also dropped 9.06 percent, the data showed.

Production of base metal and machinery fell 9.81 percent and 15.37 percent, respectively, in May, as COVID-19 continued to send demand lower, while production of the local auto/auto party industry plunged 29.52 percent due to massive lockdowns in many countries that dragged down demand and resulted in a shortage of raw materials, the MOEA said.

Looking ahead, the MOEA said, as many economies are reopening businesses, global demand is expected to recover, while emerging technologies such as 5G, HPC and artificial intelligence are expected to boost tech production.

The MOEA said that for the entire second quarter, production in the manufacturing sector is estimated to grow 2 percent-4 percent from a year earlier.

 

Source: Focus Taiwan News Channel

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