Sales generated by the local manufacturing sector hit a new record high in the second quarter of this year largely on the back of rising demand for emerging technologies worldwide, according to the Ministry of Economic Affairs (MOEA).
In addition, with the local semiconductor industry keen to invest in production expansion and technology upgrades, the manufacturing sector also saw its investment in fixed assets, excluding land purchases, hit a new high for the three month period, the MOEA added.
Data compiled by the MOEA's Department of Statistics showed revenue posted by manufacturers in Taiwan totaled about NT$7.9 trillion (US$285 billion) in the April-June period, up 23.9 percent from a year earlier and also up 9.1 percent from a quarter earlier.
The ministry said the record high sales for the second quarter, including revenue posted by production sites located overseas, largely reflected rising demand for emerging technologies such as 5G applications, high performance computing devices and automotive electronics, as well as smart gadgets.
The new high in sales also resulted from the cyclical recovery in raw materials industries including chemical, steel, machinery, auto/motorbikes and related components, the MOEA said.
In terms of fixed asset investments, the MOEA said in the wake of the global economic recovery, many manufacturers in the tech sector and the old economy segment, scrambled to invest more, boost production and meet growing demand.
Purchases of machinery and related items accounted for 80.2 percent of total fixed asset investments in the second quarter, and grew 26.8 percent from a year earlier, the ministry said.
In terms of individual industries, the electronic components industry invested NT$285.4 billion in fixed assets in the second quarter, up 32.5 percent from a year earlier, with pure wafer foundry operators, printed circuit board makers and memory chip suppliers serving as the main investors, the MOEA said.
Fixed asset investments by the electronic components industry accounted for 66.5 percent of the total in the second quarter, the MOEA added.
The computer and optoelectronics industry spent NT$13.7 billion on fixed assets in the second quarter, up 8.6 percent from a year earlier in a booming global stay-at-home economy, according to the MOEA.
The chemical materials and metal product industries invested NT$26.0 billion and NT$12.3 billion, respectively, in fixed assets in the three month period, up 34.3 percent and 15.9 percent from a year earlier, the MOEA said.
The machinery and base metal industries also saw their investments in fixed assets rise 37.3 percent and 13.7 percent, respectively, from a year earlier to NT$11.2 billion and NT$10.7 billion in the second quarter, the MOEA added.
Source: Focus Taiwan News Channel