Taiwan’s manufacturing output in the third quarter rose 10.34 percent year-on-year to NT$5.02 trillion (US$154.5 billion), the highest in the past nine quarters, the Ministry of Economic Affairs said in a report on Tuesday.
The results came as the robust demand for artificial intelligence (AI), high-performance computing (HPC) and cloud data services stimulated production momentum in the information technology and electronics industries, while the demand for new consumer electronics continued to gain steam, the report said.
It was the third consecutive quarter of annual increase in manufacturing output and followed increases of 14.09 percent in the second quarter and 4.56 percent in the first quarter, it said.
Photo: CNA
Overall, manufacturing output in the first three quarters of this year increased 9.67 percent from a year earlier to NT$14.24 trillion, it added.
The ministry expects the momentum in the manufacturing sector to continue growing going forward thanks to the continued development of emerging applications related to AI and HPC, which benefits firms in the high-end semiconductor production and advanced server-related supply chains, coupled with inventory replenishment demand ahead of the year-end shopping season, the report said.
However, the outlook for the sector still faces uncertainties amid the persistent US-China technology rivalry and ongoing geopolitical conflicts, it said.
During the July-to-September quarter, the electronic components industry — the manufacturing sector’s most important segment, with a 32.7 percent share of its total output — saw production value increase by an annual rate of 18.11 percent to NT$1.64 trillion, driven mainly by a rise of 25.34 percent in semiconductor output to NT$1.04 trillion amid strong demand for AI and high-performance computing, ministry data showed.
Suppliers of computers and optical products also saw output rise 43.46 percent to NT$530.8 billion due to solid demand for servers, while LCD panel makers reported a 4.26 percent decrease in output to NT$139.5 billion due to weak demand, the report said.
In traditional industries, suppliers of chemical materials and fertilizers reported that output grew 5.06 percent to NT$397.6 billion, and makers of base metal products saw their output increase 5.25 percent to NT$378.3 billion, both benefiting from rising prices despite falling shipments, it said.
Producers of machinery equipment last quarter posted an output increase of 1.39 percent year-on-year to NT$232 billion, as the expanded use of emerging technology applications drove demand for semiconductor production equipment and machinery components, the report said.
However, the vehicle industry’s output declined 11.16 percent to NT$115 billion last quarter due to weak demand for passenger cars and lower shipments of auto components compared with a year earlier, it said.
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