The nation’s manufacturing sector is likely to post its ninth consecutive quarter of revenue increases at the end of this year, despite waning growth momentum, findings released yesterday by the Ministry of Economic Affair’s Department of Statistics showed.
In the third quarter, manufacturing sector revenue increased 7.5 percent annually to NT$7.26 trillion (US$235.13 billion), with the petrochemical and metal industries seeing double-digit percentage growth year-on-year as companies raised prices to reflect higher material costs, the department said.
The technology sector, the manufacturing sector’s biggest revenue contributor, has begun to see slower growth due to factors such as the ongoing US-China trade war, increased saturation in the global smartphone and mobile device markets, and volatility in raw material prices, it said.
Despite the headwinds, revenue growth in the technology sector this quarter has been supported by new product launches and the peak shopping season, the department added.
Investment by domestic manufacturers during the third quarter rose 24.3 percent annually to NT$287.9 billion, led by the need for greater capacity and upgraded facilities among electronic component makers aiming for growth in artificial intelligence (AI) applications, it said.
Investment is expected to continue to grow as additional companies return to Taiwan to mitigate the effects of trade tensions, and as businesses continue to adopt advanced manufacturing technology and tap into emerging trends such as AI, Internet of Things, 5G connectivity and automotive electronics, it added.
In related news, the Taiwan Machine Tool and Accessories Builders’ Association yesterday reported that exports by the machinery industry last month dipped 2.2 percent monthly to US$296 million amid escalating trade tensions, compared with a 0.5 percent monthly gain in October.
In the first 11 months of this year, total machinery exports rose 10.6 percent annually to US$3.33 billion, the association’s data showed.
As of the end of last month, machinery exports to the US rose 32.1 percent annually to US$433.17 million, while shipments to China and Hong Kong inched up 2.6 percent to US$1.08 billion, the data showed.
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