Taiwan’s manufacturing sector last month struggled for a fourth consecutive month because of slowing global economic growth and a long period of inactivity due to the Lunar New Year holiday, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
The institute’s composite index for the manufacturing sector rose 0.26 points from a month earlier to 10.18, but the figure was still “blue,” signaling contraction according to its five-color system to describe economic activity, TIER said in a report.
However, the institute said that manufacturers might be more upbeat over the next few months given the slight rise in the composite index.
Of the five subindices that make up the composite index, general business climate and demand rose 0.18 and 0.14 respectively from a month earlier, while pricing and purchases of raw materials fell 0.05 and 0.01 respectively, with operating costs remaining unchanged, the institute said.
The report said that the electronics and electronics component sector remained “blue” last month because of a decline in shipments by semiconductor companies, which faced inventory adjustments, as well as lower capacity utilization and sales.
With car tire demand in China on the decline due to a weakening auto market, the local plastics and rubber industry also remained “blue” last month, the report said.
The machinery industry remained “yellow-blue,” signaling sluggish growth, on weak demand from China and a relatively high comparison base a year earlier, it said.
The auto and automotive parts industry was again “blue” for the month on lower sales of domestically produced cars, while Taiwan’s base metals industry was also “blue” again, hurt by trade friction between the US and China, the report said.
Despite the nation’s manufacturing doldrums in the past several months, the institute said it believed that a double-digit growth in semiconductor production equipment imports bodes well for the manufacturing sector’s overall performance later this year.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s