The nation’s official manufacturing purchasing managers’ index (PMI) fell to 61.0 last month, easing from 65.2 in March, as local manufacturers reported improved business, although the pace was tempered, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.
“The latest figure suggests continued expansion across the manufacturing sector except textiles and food product suppliers, thanks to strong demand for electronics and optical devices,” CIER president Wu Chung-shu (吳中書) told a news conference.
Despite the slowdown, the PMI stayed comfortably above the neutral mark of 50 as local firms started to benefit from inventory build-up for next-generation electronic gadgets, Wu said.
PMI data aim to capture the health of the manufacturing industry, with scores above 50 indicating expansion and those below suggesting contraction.
Many Taiwanese technology firms are responsible for supplying chips, flat panels, camera lenses, batteries, casings and other critical components for smartphones, smart watches, laptops, desktop PCs and peripheral products.
It is the second consecutive month the measure has been above the 60-point level as technological seasonality is increasingly inconspicuous, said CIER economist Chen Shin-hui (陳馨蕙), who conducts the survey.
Traditionally, the first half is the slow sales season for technology products, but inventory build-up now takes place six months ahead of new product launches, usually slated for September, Supply Management Institute in Taiwan (中華採購與供應管理協會) executive director Steve Lai (賴樹鑫) said, as local firms gain a deeper exposure to the supply chains of global technology brands.
Machinery equipment manufacturers are likely to benefit from inventory build-up earlier than chipmakers and other component suppliers, Lai said, adding that the second half would still be better than the first.
Lai and other economists are also positive about a potential US investment by Hon Hai Precision Industry Co (鴻海精密).
The move would allow Hon Hai and other local firms to take advantage of advanced research and development talent in the US, the world’s largest end-market for technology products, Lai said.
Unlike the Chinese “Red” supply chain that is seeking to replace Taiwanese firms, the manufacturing-in-the-US trend poses a business opportunity for local machinery tool makers, Wu said.
Academia Sinica economics researcher Kamhon Kan (簡錦漢) voiced a similar view, saying investment in the US would help expand the markets of local exporters as they seek to stay competitive.
The non-manufacturing industry also reported a business upturn last month, with the non-manufacturing purchasing managers’ index climbing to 56.3 from 55.1 in March, the CIER said in a separate report.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective