Manufacturing output last quarter declined for a third straight quarter, shrinking 7.01 percent year-on-year to NT$3.37 trillion (US$110.46 billion), the Ministry of Economic Affairs (MOEA) said yesterday, attributing it to sluggish global economic growth due to the US-China trade conflict.
While the manufacturing sector would continue to bear the weight of the trade tensions, companies’ relocating their production back to Taiwan, new technologies and various applications, including 5G, artificial intelligence and high-performance computing, could help drive up output going forward, the ministry said.
The decline in output last quarter was led by the electronics components industry — the manufacturing sector’s most important industry — which slid 3.81 percent to NT$940.6 billion, it said.
LCD production, for one, declined as the market remained oversaturated due to increasing Chinese supplies, it said.
However, an increase in chip production as companies build inventory ahead of new product launches helped cushion the fall, it added.
Output from the computer, electronics goods and optical components industry expanded 25.85 percent on an annual basis to hit a six-year high of NT$207.2 billion, thanks to increasing production of servers, networking and communications equipment, automotive electronic control units and thermostat controllers.
New smartphone models driving up production of camera lenses further contributed to the industry’s output last quarter, the ministry said.
Affected by falling international crude oil prices and routine plant maintenance, chemical materials output fell 23.95 percent to NT$400.7 billion, the ministry said.
Base metal output sank 13.41 percent to NT$338.1 billion, as the steel market was hit by US and European tariffs, cheap imported steel products and waning demand for new vehicles, it said.
As companies put their brakes on investing in equipment due to rising market uncertainties stemming from the US-China trade dispute, the machinery equipment industry’s output contracted 13.22 percent to NT$159.2 billion.
For the eighth quarter in a row, the vehicle and auto parts industry’s output declined 4.04 percent to NT$84.4 billion, as domestic automakers faced tough import competition and customers digested inventory, it said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to