Taiwan’s electronics component sector is expected to improve in the third quarter, driven by the launch of new consumer electronics later this year, according to a recent government report.
The sector is likely to benefit from the release of new ultrabook models, tablet PCs and smartphones, including Apple Inc’s iPhone 5, the report by the Industry and Technology Intelligence Services (ITIS) said.
The ITIS, a research institute under the Ministry of Economic Affairs, forecast a 5.3 percent quarterly rise in the electronics component sector’s production value in the third quarter to NT$219.8 billion (US$7.32 billion).
In the second quarter of this year, the sector recorded a quarterly increase of 7.6 percent in output, but the NT$208.8 billion represented a year-on-year drop of 3 percent, the ITIS said.
Global demand for electronics components has been dragged down by a gloomy economic forecast triggered by the eurozone debt crisis as well as weak markets in China and the US, the report said.
Although the sector is expected to improve in the third quarter, it will not be a huge recovery, the report forecast.
Meanwhile, the sector’s production value for the whole of this year is forecast to show an annual increase of 0.03 percent, rising to NT$836.7 billion, as a lackluster global economy remains problematic, the ITIS said.
The report was commissioned by the government and compiled by the Industrial Technology Research Institute.