Taiwan’s manufacturing output last quarter totaled NT$4.42 trillion (US$137.24 billion), rising 4.56 percent from a year earlier and reversing five straight quarters of decline, thanks to demand for electronics used in artificial intelligence (AI), high-performance computing chips and cloud services, the Ministry of Economic Affairs said yesterday.
Though global economic uncertainty lingers this year amid stubborn inflation, tight monetary policy and geopolitical tensions; demand from AI and other emerging technologies is sturdy, benefiting Taiwanese firms that supply high-end chips and servers, the ministry said.
As a result, major tech firms and partners in the supply chain have regained growth momentum and the pace of recovery would grow more evident in the second half of the year, it added.
Photo: CNA
The industrial production of electronics picked up 11.76 percent from the same period last year, with output for 12-inch wafer foundries climbing 14.06 percent to NT$889 billion, the ministry said.
The industrial production for displays and related devices also expanded 9.99 percent to NT$118.1 billion, as selling prices for large flat panels improved, it said.
Output related to PCs and optical products swelled by 27.21 percent to NT$339.3 billion, supported by the AI boom and inventory restocking, the ministry said.
Non-tech sectors also reported business improvement last quarter, although market demand leaves much to be desired, it added.
Output for base metal products squeezed a 1 percent gain, owing partly to a low comparison base a year earlier and mixed sales for electric vehicles, it said.
Industrial production for chemical products and machinery equipment floundered, as global markets have not yet shown a concrete recovery, which explains why their output shrank 5.7 percent and 2.29 percent respectively from a year earlier, the ministry said.
The pace of contraction has eased quarter by quarter, it added.
Overall, the industrial production index printed 87.26 during the January-to-March period, a 6.22 percent uptick after adjustments for inflation, putting an end to six quarters of negative growth, it said.
In related development, exports to Mexico soared 31.8 percent to a record US$1.81 billion in the first four months of this year on the back of strong demand for AI information communication technology products, the Ministry of Finance said yesterday.
Mexico-bound exports might exceed US$5 billion this year, as corporations attempt to take advantage of favorable trade terms under the US-Mexico-Canada Agreement, it added.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process