Companies with operations in the Central Taiwan Science Park recorded a 20.07 percent annual decline in trade last quarter because of a 45.26 percent plunge in imports, indicating local LCD companies continue to slow their capacity expansion.
During the quarter ending June 30, companies in the science park exported NT$56.62 billion (US$1.89 billion) worth of products, up 12.33 percent from NT$50.41 billion a year ago, according to the statistics compiled by the administration of the science park. Asia was the biggest export destination.
Looking forward, exports are expected to grow in the second half of this year, as it is thought demand for chips and LCD panels will increase amid gradual economic recovery in China, US and Europe, the administration said in the statement.
Optoelectronic companies are the biggest contributors, with NT$47.65 billion in exports last quarter, according to the statement released on Thursday.
The Central Taiwan Science Park is the biggest manufacturing site of AU Optronics Corp (友達光電, AUO), the nation’s No. 2 LCD panel maker. AUO operates five plants in the park including the most advanced 8.5-generation factory. Taiwan’s biggest LCD panel manufacturer, Innolux Corp (群創光電), also operates plants in the park.
AUO said earlier that it plans to invest about NT$20 billion on new equipment this year, less than half of last year’s NT$42 billion, to minimize the risk of oversupply.
Semiconductor companies came next with exports of NT$5.93 billion. These include the world’s top contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) and memory chipmaker Rexchip Electronics Corp (瑞晶).
Imports, however, fell to NT$37.12 billion last quarter, compared with NT$67.81 billion in the corresponding period of last year, the statistics showed.
Total trade amounted to NT$93.74 billion last quarter, down from NT$118.21 billion a year ago. That represents a 24 percent decrease from the first quarter’s NT$123.48 billion.