Growth in manufacturing production is expected to swing back into positive territory this quarter, following six consecutive quarters of annual declines, the Ministry of Economic Affairs said yesterday.
“The semiconductor and flat-panel industries will be the main growth drivers in the production value of the nation’s manufacturing sector this quarter,” an official at the ministry’s Department of Statistics said by telephone.
The official, who declined to be named, said semiconductor output should receive a boost from the launch of new smartphones and virtual reality devices this quarter.
As for the flat-panel industry, the Olympic Games in Rio de Janeiro sparked replacement demand for televisions and lifted panel prices over the past few months, the official said.
Production adjustments by Japanese and South Korean manufacturers have prompted several global TV brands to reallocate their orders to Taiwanese manufacturers this quarter, she added.
While manufacturing output might emerge from a downturn this quarter, partly due to a lower comparison base last year, the sector needs to keep a close watch on global crude oil and steel price trends, the official said.
“Stable oil and steel prices would definitely help production value to grow this quarter,” she said.
Last quarter, the manufacturing sector’s production value dropped 8.06 percent annually to NT$3.65 trillion (US$115.44 billion), falling for the sixth straight quarter, but up 8.64 percent from the prior quarter, the first quarterly growth in the past four quarters, ministry data showed.
The official attributed the quarterly growth to higher output from semiconductors and steel as demand for communication chips boosted semiconductor output, while inventory restocking lifted steel production.
Chinese measures to curb steel production and an improving auto industry also lent support to Taiwan’s steel and base metal industries last quarter, she added.
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