The climate gauge for the nation’s manufacturing industry is expected to turn “green” next year from “yellow-blue,” as vaccines could help the world emerge from the COVID-19 pandemic, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said on Wednesday.
Electronics suppliers would continue to benefit from low-contract business opportunities, as it would take a while for most people to be vaccinated, the institute said.
The Taipei-based institute seeks to project the health of the manufacturing sector using a five-color system with “green” indicating steady growth, “red” suggesting overheating and “blue” signaling a recession. Dual colors indicate a transition.
The pandemic has also been weighing on end-market demand for most electronics, with the exception of data centers, PCs and devices used in online services, it said.
Smartphone sales might gain better momentum next year with the launch of faster 5G services, the institute added.
The business climate for all other manufacturing sectors would remain yellow-blue, the institute said.
Renewed lockdowns in Europe would put pressure on the recovery of the automotive aftermarket business by slowing demand for auto parts, it said.
Demand for chemical and plastic products might pick up on the back of a global economic improvement, but increased supply from Chinese peers could create a supply glut, the institute said.
Furniture and textile product makers would gain support from property development and public infrastructure projects, but a strong New Taiwan dollar might erode profitability for petrochemical materials, it said.
Taiwan’s exclusion from the Regional Comprehensive Economic Partnership — signed by 15 Asia-Pacific nations on Nov. 15 — would add uncertainty to the nation’s business outlook, the institute said, adding that metal product makers would face similar challenges.
For the month of October, the manufacturing climate monitor flashed another yellow-blue signal with the index falling 0.85 points from September to 11.03, the institute said.
Fewer working days accounted for the month-on-month retreat, as well as the end of inventory stockpiling by China’s Huawei Technologies Co (華為), a major customer for scores of local technology firms, it said.
Tesla Inc temporarily halted some production at its auto assembly plant in California because of problems with its supply chain, but work has begun to resume, CEO Elon Musk told employees in an e-mail on Thursday. “We are experiencing some parts supply issues, so took the opportunity to bring Fremont production down for a few days to do equipment upgrades and maintenance,” Musk said in an all-staff message seen by Bloomberg. The factory was “back up and running as of yesterday,” and would rapidly ramp up to full production of Model 3 and Model Y cars “over the next several days,”
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to post a 25 percent year-on-year increase in sales in the first quarter of this year to US$12.91 billion, up from US$10.31 billion a year earlier, as its production is at full capacity, market advisory firm TrendForce Corp said in a note last week. The increase would help TSMC cement its leadership in the industry by taking a 56 percent market share in the global pure wafer foundry business, TrendForce said. Its forecast was in line with TSMC’s estimate in January, which pointed to a range of US$12.7 billion to US$13 billion for the
MULTI-USE: The arrangement of seats in future vehicles would be different, allowing passengers to do everything they do at home, the CEO of the firm’s EV platform said Electric vehicles (EVs) developed on a Hon Hai Precision Industry Co (鴻海精密) platform would be built like “a smartphone on a different platform,” Jack Cheng (鄭顯聰), chief executive officer of the Hon Hai-initiated MIH Open Platform Alliance, said on Saturday. It would be the ultimate goal to make vehicles built on the platform an extension of the driver’s home, he said during an online presentation. The alliance aims to provide resources to automakers and boost Taiwan’s EV development, with a vision to make an EV its owner’s “second home,” Cheng said. “Whatever they can do in their home, they will be able
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was on Thursday set to sell local currency bonds, as it prepared for a spending blitz amid a global chip shortage. The world’s largest contract chipmaker planned to price about NT$16 billion (US$565.25 million) of notes in three parts in an auction, though the actual issuance size might change. The manufacturer would have to contend with a recent rise in rates globally that has sent many corporate bond yields up from record lows in the past few weeks. The debt offering comes at a promising time for the semiconductor industry as the world scrambles its way