Manufacturing output last quarter rose for a sixth straight quarter given growth in global end-market demand, development of emerging technologies, digital transformation and improvement in supply chain disruptions, the Ministry of Economic Affairs said yesterday.
Rising costs of international raw materials due to Russia’s invasion of Ukraine also helped push output of the local manufacturing sector upward in the first quarter, the ministry said in a statement.
Manufacturing output increased 16.01 percent year-on-year to NT$4.16 trillion (US$139.74 billion), the highest number on record for the January-to-March period, the ministry said.
Photo courtesy of Chi Mei Corp via CNA
The increase last quarter was led by the electronic components industry — the manufacturing sector’s most important segment — which climbed 16.9 percent to NT$1.27 trillion, the highest ever for the period, it said.
Semiconductor production grew 28.74 percent to NT$622.9 billion, as demand for chips used in 5G, high-performance computing, the Internet of Things and automotive applications remained strong, the ministry said.
However, LCD production posted an annual decrease of 5.24 percent to NT$203.2 billion given lower panel prices compared with a year earlier, it added.
Output from the computer, electronics goods and optical components industries expanded 19.03 percent on an annual basis to NT$235 billion on the back of increased production of servers, solid-state drives and networking equipment to meet robust demand for cloud computing services, the ministry said.
Traditional industries such as base metals, chemical materials, petroleum and coal experienced rises in output of 22.15 percent, 12.91 percent and 39.48 percent respectively to NT$459.9 billion, NT$514.9 billion and NT$242.2 billion last quarter from a year earlier due to higher international raw material costs, the ministry said.
As orders increased in semiconductor, automation equipment and 5G-related industries, the machinery equipment industry’s output rose 14.46 percent to NT$194.3 billion last quarter, it said.
However, automobile and auto parts output declined 0.83 percent to NT$96.6 billion, as domestic automakers faced persistent shortages of components and tougher emissions regulations on diesel-powered trucks, it said.
The ministry said it is positive about the outlook for the manufacturing sector, as companies continue to develop new technologies, chipmakers prepare to expand capacity and major economies implement infrastructure projects.
However, growth headwinds lie ahead for the sector, the ministry said, citing supply chain bottlenecks, sea port congestion, the COVID-19 pandemic, lockdowns in China and the war in Ukraine.
Semiconductor stocks on Friday took a beating after a grim profit warning from Idaho-based Micron Technology Inc sparked fresh worries about the US’ earnings power as the country is potentially heading for a recession. Despite a broader stock market rally, the Philadelphia Stock Exchange Semiconductor Index dropped 3.8 percent after Micron, the largest maker of memory semiconductors in the US, flagged that demand was cooling for chips used in computers and smartphones. The index — which is home to US chip giants Advanced Micro Devices Inc and Nvidia Corp, as well as Micron — is down 38 percent this year. Historically, semiconductor
WHOLLY OWNED SUBSIDIARY: Costco Wholesale said it expected the purchase of the remaining 45 percent stake to add 1 to 1.5 percent to its earnings per share US-based Costco Wholesale Corp on Thursday said that it had purchased the remaining 45 percent stake in Costco President Taiwan Inc (台灣好市多) for US$1.05 billion, making the local company a fully-owned unit. “We estimate that the purchase would add about 1 to 1.5 percent to [our] earnings per share,” Costco said in a statement. Costco President Taiwan was established as a joint venture with Kaohsiung-based President Group (大統集團), which held a 45 percent stake. Since the first Costco store opened in Kaohsiung in 1997, 14 outlets have been set up in Taiwan, company data showed. PROFITABLE Three Costco stores in Taiwan — in Taipei’s Neihu
MOBILITY SOLUTIONS: Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its ecosystem through the platform, the Taiwanese firm said India’s Tata Technologies Ltd has become the latest member of Hon Hai Precision Industry Co’s (鴻海精密) MIH Open Platform to jointly develop sustainable mobility solutions for customers worldwide, the Taiwanese company said yesterday. It might include embedded and electrical, electric platform development and battery management system solutions, among others, Hon Hai said. Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its electric-vehicle (EV) ecosystem through the MIH platform, it said. The open platform has about 2,380 members around the world, with an aim to jointly develop EV ecosystems and shrink the time to market for products. Hon Hai made the
SOARING PROFITS: Semiconductors and shipping have knocked automaking and construction out of the 10 highest paying industries, stock exchange data showed Mobile phone chip designer MediaTek Inc (聯發科) posted an average of NT$5.15 million (US$173,249) in annual compensation for non-managerial employees last year, marking the highest among all firms listed on the Taiwan Stock Exchange (TWSE), exchange data showed. That is a 66 percent increase from the company’s average compensation of NT$3.08 million in 2020, as its earnings per share (EPS) expanded from NT$26.01 in 2020 to NT$70.56 last year. That is also three times higher than the average compensation of NT$1.7 million in the nation’s semiconductor industry, the data showed. The increases helped MediaTek advance its ranking from third in 2020, replacing