Industrial production last month grew 7.34 percent year-on-year, snapping three consecutive months of decline, as strong demand for 5G-related applications and work-from-home and distance-learning trends boosted production of electronic components to a record high, the Ministry of Economic Affairs data showed yesterday.
That growth was supported by a 7.81 percent year-on-year increase in manufacturing production, the ministry said.
The COVID-19 pandemic has stimulated demand for work-from-home equipment such as servers, laptops and communication devices and the demand remains strong, it said.
“It has been a remarkable run for electronic components,” Department of Statistics Deputy Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei.
Electronic components production increased 23.82 percent year-on-year, marking the seventh month in a row of double-digit percentage growth, according to ministry statistics.
Among the electronic components segment, IC products grew at the fastest-pace of 35.24 percent year-on-year, hitting a record high.
Flat panels and related components continue to benefit from work-from-home trends, with production growing 7.63 percent year-on-year, while electronic and optical products manufacturing expanded 19.4 percent year-on-year.
Automotive and auto parts production declined 19.45 percent annually, which the ministry attributed to collapsing oil prices that restrained consumer demand in the Middle East.
A global drop in demand for vehicles during the pandemic was also a factor, the ministry added.
Petrochemical products also suffered, posting a 22.9 percent year-on-year decline in production, and textiles remain hard-hit, falling 21.46 percent year-on-year, mostly due to decreased or lagging orders in the wake of the pandemic, the ministry said.
Overall, industrial production in the first half of the year expanded at an annual rate of 6.68 percent, while manufacturing expanded 7.17 percent annually, the ministry said.
However, there are signs that the worst is over for some traditional industries, the ministry said.
Machinery equipment production’s decline decelerated to an annual reduction of 5.2 percent, a marked improvement from a 15 percent year-on-year reduction in May.
The decline for chemical materials has also been arrested at 3.1 percent lower year-on-year, according to ministry data.
“We expect traditional industries to ‘warm back up’ as oil and steel prices rise,” Wang said.
The ministry’s survey showed that manufacturing production is to trend up further this month.
Taiwan’s wholesalers, retailers and restaurants are continuing their climb back to normality after being hit hard by COVID-19, the ministry said.
Wholesalers returned to positive territory last month, growing 0.1 percent year-on-year compared with minus-6.5 percent in May.
Retailers declined 1.3 percent, compared with minus-5.7 percent in May, and restaurants declined 7 percent, compared with minus-8.2 percent in May, the ministry said.
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