Wed, Jun 12, 2019 - Page 11 News List

Fixed asset purchases rise 29.8%

EQUIPMENT UPGRADES:Despite cautiousness due to trade tensions, investment in manufacturing is expected to keep a steady pace, the Department of Statistics said

By Natasha Li  /  Staff reporter

Purchases of local fixed assets (excluding land) by the domestic manufacturing sector increased 29.8 percent year-on-year to NT$326.2 billion (US$10.38 billion) in the first quarter, the largest increase since the first quarter of 2011, data released on Monday by the Ministry of Economic Affairs’ Department of Statistics showed.

Purchases by the electronic components industry led the sector, increasing 44.5 percent to NT$214.1 billion and accounting for 65.7 percent of overall purchases in the sector, the data showed.

The increase was due to semiconductor companies expanding manufacturing bases and acquiring equipment to upgrade production lines, the department said.

The chemical materials industry had the second-largest amount of purchases, increasing 30.6 percent to NT$18 billion thanks to petrochemical firms adding production lines and launching cogeneration-engineering projects.

Purchases by the metal product industry increased 30.9 percent to NT$11.1 billion thanks to investment in ongoing wind farm projects.

New factories and equipment for the production of stainless steel pipes also contributed to the increase, the department said.

Firms returning to Taiwan and setting up production lines to avoid the ongoing US-China trade dispute increased purchases in the computer, electronic goods and optical components industry 2.5 percent to NT$8.4 billion, the data showed.

Purchases by the base metal industry lagged behind, falling 23 percent to NT$8.1 billion due to a high comparison base last year, when the industry allocated funds for the renewal of blast furnaces, the department said.

Despite cautiousness due to trade tensions, investment in the sector is expected to maintain a steady pace, the department said.

Semiconductor firms would continue to invest to maintain their competitiveness, it added, and as more businesses return to Taiwan, local wind power projects are likely to attract further investment.

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