The production value of the local manufacturing sector is expected to rise 6.4 percent from a year earlier to hit a record NT$25.8 trillion (US$872.09 billion) this year as Taiwanese tech exporters continue to benefit from healthy global demand and significant investment, the Industrial Technology Research Institute said.
The global economy is facing uncertainty caused by the war in Ukraine, Chinese COVID-19 lockdowns and rising inflation, institute analyst Chen Chia-ying (陳佳楹) said during an online forum on Friday to discuss Taiwan’s manufacturing business climate, industrial sustainability and emissions targets.
However, for many export-oriented manufacturers, output is expected to continue trending higher, with the local economy to grow steadily amid healthy global demand and an increase in private investment, Chen said.
Photo: RITCHIE B. TONGO/EPA-EFE
The four major industries in the manufacturing sector are forecast to see an increase in their output, based on the institute’s model, Chen said.
The information and electronics industry is expected to generate NT$10.32 trillion in production value this year, up 9.28 percent from a year earlier, benefiting from robust shipments in gadgets used in emerging technologies such as 5G applications, artificial intelligence of things (AIoT), high-performance computing devices and automotive electronics, Chen said.
This growth is likely to lead to higher demand for semiconductors and other electronic components, she added.
The production value of the metal and mechatronics industry is expected to rise 6.08 percent from a year earlier to NT$7.37 trillion given the rising popularity of production automation, smart manufacturing and renewable energy development, Chen said.
The output of light industries, such as textile supplies, is expected to rise 2.64 percent from a year earlier to NT$2.76 trillion as many clients of Taiwanese textile producers are to resume efforts to rebuild inventories, she said.
The chemical industry is expected to post NT$5.35 trillion in production value, up 1.92 percent from a year earlier, as the industry faced a relatively high comparison base last year and international crude oil prices are to remain high before moderating from the third quarter, Chen said.
The local manufacturing sector should remain alert for risks from geopolitical tensions and the COVID-19 pandemic, she said.
The institute also forecast that Taiwan’s renewable energy industry would generate about NT$209.5 billion in production value this year, up 5.7 percent from a year earlier, which would be the first time in five years that the industry’s output exceeds NT$200 billion.
On Ireland’s blustery western seaboard, researchers are gleefully flying giant kites — not for fun, but in the hope of generating renewable electricity and sparking a “revolution” in wind energy. “We use a kite to capture the wind and a generator at the bottom of it that captures the power,” said Padraic Doherty of Kitepower, the Dutch firm behind the venture. At its test site in operation since September 2023 near the small town of Bangor Erris, the team transports the vast 60-square-meter kite from a hangar across the lunar-like bogland to a generator. The kite is then attached by a
Foxconn Technology Co (鴻準精密), a metal casing supplier owned by Hon Hai Precision Industry Co (鴻海精密), yesterday announced plans to invest US$1 billion in the US over the next decade as part of its business transformation strategy. The Apple Inc supplier said in a statement that its board approved the investment on Thursday, as part of a transformation strategy focused on precision mold development, smart manufacturing, robotics and advanced automation. The strategy would have a strong emphasis on artificial intelligence (AI), the company added. The company said it aims to build a flexible, intelligent production ecosystem to boost competitiveness and sustainability. Foxconn
Leading Taiwanese bicycle brands Giant Manufacturing Co (巨大機械) and Merida Industry Co (美利達工業) on Sunday said that they have adopted measures to mitigate the impact of the tariff policies of US President Donald Trump’s administration. The US announced at the beginning of this month that it would impose a 20 percent tariff on imported goods made in Taiwan, effective on Thursday last week. The tariff would be added to other pre-existing most-favored-nation duties and industry-specific trade remedy levy, which would bring the overall tariff on Taiwan-made bicycles to between 25.5 percent and 31 percent. However, Giant did not seem too perturbed by the
TARIFF CONCERNS: Semiconductor suppliers are tempering expectations for the traditionally strong third quarter, citing US tariff uncertainty and a stronger NT dollar Several Taiwanese semiconductor suppliers are taking a cautious view of the third quarter — typically a peak season for the industry — citing uncertainty over US tariffs and the stronger New Taiwan dollar. Smartphone chip designer MediaTek Inc (聯發科技) said that customers accelerated orders in the first half of the year to avoid potential tariffs threatened by US President Donald Trump’s administration. As a result, it anticipates weaker-than-usual peak-season demand in the third quarter. The US tariff plan, announced on April 2, initially proposed a 32 percent duty on Taiwanese goods. Its implementation was postponed by 90 days to July 9, then
RSS