Taiwan’s publicly listed manufacturing companies saw their net income increase by an annual 15.3 percent to NT$240.8 billion (US$7.98 billion) in the first quarter, the Ministry of Economic Affairs said yesterday.
The rise in manufacturing firms’ profits in the first three months of the year from the same period last year reflected increased profitability in the wafer foundry sector, signs of a turnaround in the solar industry and the steady recovery of DRAM chipmakers, the ministry said in a statement.
According to the ministry, the total revenue of manufacturing firms listed on either the Taiwan Stock Exchange or GRETAI Securities Market gained 3.6 percent annually to NT$5.31 trillion in the first quarter, driven by the computer, electronics and optoelectronics industries, as well as the electronic components sector.
LEADING SECTORS
“Total revenue in the computer, electronics and optoelectronics industries rose 2.9 percent annually in the first quarter, on the back of the ongoing global economic recovery and strong demand for consumer electronic products,” the ministry’s statement said.
“In the electronic components sector, total revenue increased 3.8 percent year-on-year in the first quarter thanks to rising demand for mobile devices, which continuously drove up production in the wafer foundry and semiconductor packaging supply chains,” it added.
The latest batch of government data came as industry watchers said listed firms’ improved first-quarter results were led by the upstream technology sector — especially semiconductor firms — and selective hardware components suppliers.
TOP PERFORMERS
Led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Advanced Semiconductor Engineering Inc (日月光) and Siliconware Precision Industry Co (矽品), most semiconductor companies showed above-seasonal performance in the first quarter and have offered positive investor guidance for the current quarter.
Meanwhile, optical lens makers — led primarily by Largan Precision Co (大立光) and Newmax Technology Co (新鉅科技) — remained the best performers in the hardware components industries, posting 27 percent year-on-year revenue growth and a 880 basis point increase in operating margin, according to a Credit Suisse Group AG report published last week.
PC component makers also saw revenue growth accelerate in the first quarter, driven by better inventory adjustments and demand for commercial models, while casings makers underperformed other components suppliers, seeing their revenue contract by 29 percent annually and operating margin decline 162 basis points from a year earlier, the report showed.
FIXED ASSET FUNDS
Separately, the ministry yesterday released first-quarter data on listed manufacturers’ fixed asset investments and research and development spending, with TSMC retaining its No. 1 spot in both categories.
The world’s largest wafer foundry earmarked NT$114.9 billion for fixed asset investments in the first quarter, up 42.9 percent from the same period last year, and spent NT$12.1 billion on research and development for an annual rise of 13.3 percent as it aims to meet robust demand for high-end chips and wafers using advanced process technologies, the ministry said.
In terms of fixed asset investments, China Steel Corp (中鋼) finished the quarter as runner-up to TSMC with NT$8.3 billion — down 47.9 percent annually — followed by textile manufacturer Far Eastern New Century Corp (遠東新世紀), which increased its funds for such investments 34.4 percent to NT$7.5 billion.
R&D SPENDING
As for research and development spending, Hon Hai Precision Industry Co (鴻海), which assembles iPhones and iPads for Apple Inc, stood as the second-biggest spender, with an investment of NT$9.8 billion, up 2.4 percent year-on-year.
MediaTek Inc (聯發科), the nation’s biggest handset chip designer, took third place, after increasing its spending 62.4 percent from a year earlier to NT$8.9 billion in the quarter, according to the ministry’s tallies.
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