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Taiwan's industrial production hits new high in Q2

2021-07-25
Focus Taiwan
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Taiwan's industrial production hits new high in Q2
Taiwan's industrial production hits new high in Q2

Taipei, July 24 (CNA) Taiwan's industrial production for the second quarter of this year hit a new high on rising global demand for both tech and old economy items at a time when the world's economy was on a recovery as businesses reopen, according to the Ministry of Economic Affairs (MOEA).

Data compiled by the MOEA showed the industrial production index for the April-June period rose 16.50 percent from a year earlier to 129.23, a historical high for Taiwan. The second quarter's index also rose 5.54 percent from a quarter earlier, the data indicated.

The second quarter marked the eighth consecutive quarter for the index to grow year-on-year, the MOEA said.

The sub-index of the manufacturing sector, which accounts for more than 90 percent of the total production, rose 17.61 percent from a year earlier to a new high of 131.08 in the second quarter. The second quarter figure was also up 4.97 percent from a quarter earlier.

In June alone, the industrial production index rose 18.37 percent from a year earlier to 135.32, marking the 17th consecutive month of a year-on-year increase, after May's growth of 16.88 percent, with the sub-index for the manufacturing sector up 20.20 percent from a year earlier.

MOEA Department of Statistics deputy chief Huang Wei-chieh (黃偉傑) said the local high-tech industries benefited from rising popularity in emerging technologies such as 5G applications, high performance computing devices and automotive electronics, which boosted Taiwan-made chip sales.

In a booming stay-at-home economy, Huang said, information technology items and TV panels also saw strong demand.

In June, production generated by the electronics component industry rose 23.61 percent from a year earlier, marking the 19th straight month of double-digit growth, with production posted by semiconductor makers up 24.56 percent from a year earlier, the MOEA said.

It noted that flat panel makers also enjoyed a 23.16 percent increase from a year earlier in June due to rising needs from remote work and online learning.

With demand for raw materials on the rise, production generated by chemical material, base metal and machinery industries rose 15.01 percent, 18.66 percent and 30.67 percent, respectively, in June compared to a year earlier.

The auto and auto parts industry reported a 35.77 percent year-on-year increase in production due to demand for car components from the U.S. and European markets, where lockdowns were eased, the MOEA said.

In the first half of this year, Taiwan's industrial production index up 14.62 percent from a year earlier with the sub-index of the manufacturing sector up 15.66 percent, according to the MOEA.

While the COVID-19 pandemic made a comeback amid escalating Delta variant infections worldwide, massive vaccination programs have been launched in many countries to stabilize the economy, so Huang said production of Taiwan's manufacturing sector could continue to grow, expecting the year-on-year growth to range between 18.4 percent and 19.5 percent in July.

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