The nation’s manufacturing industry is expected to see revenue grow at a faster pace of 3.2 percent this year as an improving global economy propels higher demand for electronics and higher commodity prices, the Industrial Economics and Knowledge Center (IEK, 產業經濟與趨勢研究中心) said yesterday.
The projection also reflects a boost in the second half from the launch of Apple Inc’s new iPhones, which are expected to have an extensive effect on the nation’s information and communications technology sector, the center said.
“End-product demand has turned out to be brisker than we had imagined, thanks to improving macroeconomics,” IEK policy and regional research division deputy director Peter Cheng (陳志強) told a media briefing.
Manufacturing industry revenue is forecast to expand to NT$17.43 trillion (US$573.2 billion) this year, compared with last year’s NT$16.89 trillion, which would be the first annual growth after two years of contraction, the center said.
The forecast is better than the center’s estimate three months ago of annual growth of 2.52 percent, but the manufacturing industry has still not recovered to its level prior to 2014.
“The world’s economic growth still looks fragile and black swans in the US, Europe and North Asia are poised to take away the growth momentum in the second half,” Cheng said.
The IMF forecast that the global economy would grow 3.4 percent annually this year, faster than last year’s 3.1 percent, he added.
Revenue of the information and communications technology sector, the biggest contributor to the nation’s manufacturing industry, is expected to grow 3.96 percent year-on-year to NT$6.22 trillion this year, outpacing an earlier estimate of a 3.47 percent expansion.
The basic metal and machinery sector would be another pillar of the local manufacturing industry this year, mainly due to a steep hike in iron ore prices, with revenue likely to grow 0.52 percent this year to NT$4.64 trillion, Cheng said.
Due to rebounding crude oil prices, revenue of the petrochemical industry would increase 5.87 percent to NT$4.37 trillion this year, compared with a previous estimate of a 5.48 percent increase, the center said.
Revenue of the livelihood sector — including the textile industry — could grow 1.72 percent annually to NT$2.21 trillion, up from an earlier 0.92 percent growth forecast, the center said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS