Fixed asset investment by manufacturers grew 43.4 percent year-on-year to a record NT$496 billion (US$17.88 billion) last quarter, as electronic, petrochemical and machine tool suppliers rushed to expand capacity to meet surging demand amid a global economic recovery, the Ministry of Economic Affairs yesterday.
On a quarterly basis, the figure increased 15.6 percent from NT$429.1 billion the previous quarter.
Fixed asset investment by electronic component makers rose to a record NT$347.2 billion last quarter, accounting for 70 percent of the total, the ministry said in a statement, attributing the growth to capacity expansion by semiconductor companies into advanced and mature technologies, and flat-panel makers producing value-added products.
Chemical companies were the second-biggest investors at NT$21.4 billion, up 26.3 percent from a year earlier.
Computer and optoelectronics companies ranked third, investing NT$15.2 billion, up 11.7 percent annually.
The ministry expects local semiconductor companies to continue accelerating their investments and more Taiwanese businesses to “reshore.”
Coupled with the localization of the offshore wind farm supply chain, the ministry expects this year’s total investment to hit a record high.
Local manufacturers also saw their revenue rise 19 percent year-on-year, or 6.4 percent quarter-on-quarter, to a record NT$8.4 trillion last quarter, ministry statistics showed.
The ministry credited new products from an international mobile device brand, as well as the proliferation of 5G, high-performance computing applications and automotive electronics for the growth.
“Demand for novel applications triggered robust sales in the information and communications technology industry,” the ministry said.
It was not only the tech sector that boomed. Traditional products, such as petrochemicals, steel, machinery and vehicles, all experienced double-digit growth in revenue last quarter from a year earlier, the ministry said.
“Semiconductor companies are proactive in investing in advanced processes and monitor panel plants are upgrading to produce advanced products,” it said.
“Chemical sales have received a boost from the demand for chemicals used in semiconductor manufacturing,” it added.
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