The manufacturing industry’s business climate monitor stayed “green” in August, suggesting steady growth, as local tech firms benefited from inventory demand ahead of new product launches by global technology brands, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said yesterday.
It is the fifth straight “green” signal, even though manufacturers overseas remained weighed by a slowdown, the Taipei-based think tank said.
The composite index compiled by the TIER increased 0.29 points from the previous month to 14.1, as the readings on demand and selling prices weakened, but the scores on the operating environment, inputs and production costs climbed modestly, it said.
Photo: Amy Yang, Taipei Times
The mixed results came as local electronics suppliers gained business traction ahead of the releases of a new iPhone series and Apple watches last month, it said.
Taiwanese firms are responsible for making the new iPhones’ camera lenses, chips and other components, the TIER said, adding that the advent of the Christmas season also ramps up business for electronics used in notebook computers, e-readers and peripheral gadgets.
The institute’s data showed the input score added 0.8 points, and both the operating environment and production costs inched up 0.13 points, while demand and selling price lost 0.13 points and 0.65 points respectively.
Business sentiment fell in the first half of August due to concerns about a potential hard landing in the US economy, but the unease subdued after the US job market proved resilient, a relief for tech exporters, the institute said.
By sector, the business monitor flashed the second boom signal for local manufacturers of electronic components, as evidenced by record-high export orders and outbound shipments, as well as strong industrial production, the TIER said.
The recovery extended to other sectors, although in an uneven manner.
Machinery equipment makers reported a business uptick, thanks to demand from semiconductor firms, but base metal suppliers struggled with listless demand and price competition from abroad, it said.
Domestic makers of textile products came out of the woods on the back of the high sales season and the local currency’s depreciation, reversing a hit linked to China’s termination of favorable trade terms, the institute said.
Food and beverage suppliers received seasonal support over the summer vacation and Ghost Month, which fell mostly in August this year, it said.
Ghost Month is believed to be the main reason for a 17 percent decline in new vehicle sales, it added.
However, local makers of auto parts emerged from a business retreat, helped by restocking demand from automakers in the North America market, the institute said.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
RSS