Taiwan’s manufacturers last month saw their operations expand at the slowest pace in 18 months as supply chain disruptions lingered, but expectations of a global economic recovery boosted confidence for business going forward, IHS Markit said yesterday.
The IHS Markit Taiwan Manufacturing Purchasing Managers’ Index fell to 54.3, from 55.1 in January, indicating a pickup in overall business activity.
“Supply chain disruptions remained an issue and relatively high inventories at clients also weighed on production and sales,” IHS Markit economic associate director Annabel Fiddes said in a report.
Photo: CNA
The slowdown in production growth was due partly to longer lead times for inputs and increased backlogs of work, IHS said, adding that companies built up inventories of purchased goods to protect against delays.
While some manufacturers reported an increase in output, others said that raw material shortages and high inventory levels at customers slowed growth, it said.
Total new business grew at the weakest rate in five months, although it remained healthy overall, IHS said.
The upturn was supported by a further rise in exports, with a number of firms citing higher demand from customers in China, Europe and the US, it said.
It took more time for purchased items to arrive at manufacturers due to material and component shortages, and shipping delays, although the situation improved a bit, IHS said.
Supply chain disruptions also took a toll on firms’ ability to ship items to customers, it said.
The backlogs of work remained serious, even though the reading fell to the lowest in 18 months, IHS said.
Employment gained modestly, as some firms said that a lack of foreign workers hampered recruitment plans, it said.
Cost pressures remained sharp, with input costs and output charges rising substantially, IHS said, adding that businesses reported higher costs for raw materials, logistics and shipping.
Optimism about business outlook for the coming 12 months accelerated for the fifth consecutive month to the highest level since April last year, it said.
Expectations that the COVID-19 pandemic would fade away, and global economic conditions and supply chains would return to normal lifted business confidence to the highest level in 10 months, it added.
“The recent decline in global Omicron infections lends support to the view that economic conditions across the world will improve and shore up business in the coming months,” Fiddes said, referring to a variant of SARS-CoV-2.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday. The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday. Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be
RSS