Last month saw industrial production rebound at its fastest pace in nine months, backed by a jump in output by semiconductor manufacturers, which benefited from the debut of Apple’s Inc’s latest iPhone models, statistics released by the Ministry of Economic Affairs yesterday showed.
Industrial production climbed 7.74 percent annually last month, ministry data showed.
Manufacturing, which contributed 93 percent to industrial output as a whole, expanded 8.35 percent year-on-year last month, surpassing the ministry’s forecast of a 5 percent increase.
“Sales of mobile devices by global brands stimulated inventory demand for electronic components, which spurred production in foundry, chip packaging and chip substrates” last month, the ministry said in a statement.
Chipmaker Taiwan Semiconductor Manufacturing Co (台積電) and chip packaging and testing service provider Advanced Semiconductor Engineering Inc (日月光半導體) are among the biggest beneficiaries of Apple’s launch of the iPhone 7 series early this month.
A long-awaited recovery in the LCD panel sector also helped, the ministry said.
LCD panel manufacturers posted a 4.47 percent annual increase in output due to recovering demand, ending 18 straight months of contraction, it said.
That bodes well for the nation’s manufacturing output outlook for the current quarter.
The ministry expects the sector’s expansion to extend into this month, which should lift quarterly figures on an annual basis.
That would mark the first quarterly growth since the first quarter last year, the ministry said.
“Year-end holiday season demand, persistent demand for new mobile devices, as well as proliferating demand for new technologies such as Internet of Things, car electronics and virtual reality devices are driving electronic component production,” the ministry said. “On top of that, stabilizing crude oil prices and steel prices should help sustain the manufacturing sector’s growth momentum.”
Last month, the electronics component segment, which makes up the bulk of manufacturing output, saw production rise 13.34 percent from a year earlier, with the strongest growth coming from semiconductors at an annual rate of 19.23 percent, ministry data showed.
Of the nation’s six major manufacturing sectors, only machine tool makers continued to see output shrink last month.
However, the contraction slowed to 2.76 percent last month because of rising demand for custom-made tools and factory automation, snapping 11 months of double-digit percentage declines, the ministry said.
In the first eight months of the year, manufacturing output contracted 0.8 percent, compared with the same period last year.
In a separate statement, the ministry said that wholesale revenue rose 3.4 percent annually last month to NT$832.8 billion (US$26.5 billion), ending 18 months of decline.
The ministry attributed the growth to strong demand for premium smartphones, as well as Internet of Things and automotive electronics products.
Retail sales were little changed at NT$328.4 billion last month, as department store and convenience store sales fell, offsetting growth in demand for food during the Ghost Month, as well as pharmaceuticals and automobiles, the ministry said.
The ministry expects wholesale revenue to rise further this month, thanks to the launch of new mobile devices and cars, in addition to stabilizing steel and crude prices.
Retail sales are forecast to fall as people cut back on travel and restaurant spending during the typhoon season, it said.
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