Industrial production grows for 6th straight month in Taiwan

Taipei-Taiwan's industrial production grew almost 3 percent in October from a year earlier, marking the sixth consecutive month of growth as global demand remained solid, according to the Ministry of Economic Affairs (MOEA).

In a statement released Thursday, the MOEA said the October industrial production index rose 2.85 percent year-on-year to 112.24 as international brands launched new models, including Apple Inc.'s premium iPhone X, which boosted buying.

On a month-on-month basis, Taiwan's industrial production for October showed 0.15 percent growth, but after seasonal adjustments, index was down 1.93 percent, the MOEA said.

The sub-index for the manufacturing sector, which accounts for more than 90 percent of the country's total industrial production, rose 3.10 percent from a year earlier to 113.87, marking the 18th straight month of year-on-year growth, the MOEA said.

The MOEA data showed that production in the electronics component segment rose 7.63 percent from a year earlier in October, driven by the launch of high end mobile devices, which boosted production in Taiwanese semiconductor industry by 10.23 percent year-on-year.

In addition, production in the flat panel and related component segment rose 4.33 percent from a year earlier in October, the data indicated.

However, production of computer, optoelectronics devices and other electronics fell 2.03 percent from a year earlier in October largely because of rising competition in the global market, which was saturated with new products, the MOEA said.

Production of base metal also fell, dropping 8.44 percent from a year earlier in October, as some major steel suppliers reduced their output due to annual maintenance, the MOEA added.

The local auto and auto parts industry showed a 2.53 percent year-on-year decline in production, mainly because of a relatively high comparison base in the same period of last year, as a blizzard in North America in October affected demand for automobiles and auto parts, according to the data.

Meanwhile, the local chemical material segment reported a 2.52 percent year-on-year increase in October on the back of higher international crude oil prices and stronger demand for petrochemical raw materials, the data showed. Production of machinery also increased, rising 15.46 percent from a year earlier in October amid higher global demand for production equipment, the ministry said.

In the first 10 months of the year, Taiwan's industrial production grew 3.28 percent from a year earlier, with the sub-index for the manufacturing sector up 4.29 percent year-on-year.

Head of the MOEA's statistics department Wang Shu-chuan (???) said production in the local manufacturing sector is unlikely to show much change in November due to a delay in shipments of new high-tech devices.

However, it is expected to pick up in December, boosted by deferred shipments from the previous month, he said.

Source: Focus Taiwan News Channel