Export orders and factory production unexpectedly rose in March as rising global demand for computer chips and flat-panel displays fuel a recovery from the nation's worst recession on record.
Overseas orders hit NT$440 billion (US$12.71 billion) in March, a 1.7 percent increase on the year and a 25 percent increase from February, the Ministry of Economic Affairs reported. Production rose 0.35 percent the year, the ministry added. Both rose for the second time in 13 months.
Manufacturers such as United Microelectronics Corp (
"The earnings outlook has brightened visibly," said Dennis Liu, a manager at Elan, whose customers include Hong Kong's Vtech Holdings Inc, which has sole rights to sell under AT&T Corp's brand name in China. Sales will rise at least 30 percent this quarter on higher demand for the company's chips that identify phone callers, he said.
Orders for electronics, the nation's biggest export, rose 3.71 percent in March from a year earlier to US$2.35 billion, following February's 6.6 percent drop, the ministry said. Orders for telecommunications equipment rose 8.56 percent to US$2.6 billion. Orders indicate shipments in two to three months.
"Electronics is the key" to the nation's rebound, said Nicholas Bibby, a regional economist at UBS Warburg LLC. "Export orders for communication devices have been up quite significantly."
Customers in the US increased orders by 3.4 percent last month from a year earlier, following a 2.7 percent increase in February.
Orders from Hong Kong climbed 12.9 percent as manufacturers shipped more parts to their factories in China. Most shipments from Taiwan to China go through Hong Kong, since direct trade links between the two are prohibited.
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