Investments in fixed assets, excluding land, by the nation’s manufacturing sector hit a record NT$349.1 billion (US$11.44 billion) last quarter, led by accelerating investments from semiconductor companies, the Ministry of Economic Affairs said in a report on Tuesday.
The electronic components industry topped the list, with investments growing 13 percent year-on-year to NT$222 billion to account for 63.6 percent of the total, the ministry said, as chipmakers poured money into advanced process technologies.
The ministry also noted a rise in fixed-asset purchases by other electronic components makers as they expanded capacity in light of upcoming 5G rollouts.
The chemical materials industry ranked second with investments of NT$17.4 billion, down 4 percent from a year earlier due to a high comparison base, it said.
Coming in third was the metal product industry, with fixed-asset purchases soaring 56.1 percent to NT$14.5 billion on the back of steady investments from the offshore wind power industry and construction of new production facilities by local firms, it said.
In light of the trade dispute between the US and China, investments by the computer, electronic goods and optical components industry increased 5.1 percent to NT$13.3 billion, but the base metal industry posted a decline of 17.1 percent to NT$8.5 billion due to a high base effect last year, it said.
In the first three quarters of the year, fixed-asset investments surged 23.7 percent year-on-year to NT$1.01 trillion.
Separately, overall revenue from Taiwan’s manufacturing sector (including sales from overseas production) declined 5.3 percent year-on-year last quarter to NT$7.06 trillion, data published in the same report showed.
While the sector witnessed an across-the-board decline, traditional industries took the biggest hit, as raw material prices dropped, while companies increasingly held back on investments due to a global economic slowdown, the ministry said.
The computer, electronic goods and optical components industry, which topped the list in terms of revenue, contracted 3.6 percent to NT$2.38 trillion, as PC firms frontloaded their orders in the second quarter, while delayed shipments of smart mobile devices dampened sales for the industry, it said.
The electronic components industry similarly witnessed a 3.1 percent drop to NT$1.39 trillion, as the flat-panel market remained oversupplied, while prices of DRAM and passive components slumped, it said.
Revenue from the sector totaled NT$19.98 trillion in the past three quarters, down 3.4 percent year-on-year, the ministry said.
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