Taiwan’s manufacturing output in the fourth quarter of last year rose 9.44 percent year-on-year to NT$5.05 trillion (US$154.21 billion), the highest in the past 10 quarters, the Ministry of Economic Affairs said in a report yesterday.
It was the fourth consecutive quarter of annual growth in manufacturing output, following increases of 10.47 percent in the third quarter, 14.31 percent in the second quarter and 4.76 percent in the first quarter, the report said.
The ministry attributed last quarter’s increase to continued production growth in the information technology and electronics industries, driven by robust demand for applications related to artificial intelligence (AI), high-performance computing (HPC) and cloud data services, coupled with stocking demand ahead of the Lunar New Year holiday, it said.
Photo: CNA
The production value of the electronic components industry — the manufacturing sector’s most important segment, with a 35.24 percent share of the total output — increased by an annual rate of 19.37 percent to NT$1.78 trillion, as a 26.81 percent rise in semiconductor output offset a 2.91 percent retreat in the production of flat panels and related components, it said.
The production value of computer and optical product suppliers, accounting for 8.87 percent of the manufacturing sector’s total output, soared 25.49 percent to NT$448.3 billion, the highest quarterly level ever, due to solid demand for AI devices and cloud-based servers, it said.
However, the uneven recovery in global end-market demand resulted in mixed output performance in traditional industries, where the reported production value of chemical material and fertilizer suppliers decreased 2.73 percent, while firms in the vehicle industry posted an 11.3 percent decline.
The output of base metal product makers increased 1.08 percent and producers of machinery equipment posted an 8.95 percent rise, the report said.
For the whole of last year, Taiwan’s manufacturing output increased 9.75 percent from a year earlier to NT$19.31 trillion, it added.
While the development of emerging applications related to AI and HPC, as well as the strong demand for advanced semiconductor chips and servers, are expected to continue supporting Taiwan’s manufacturing sector, a US-China technology rivalry, geopolitical conflicts and global trade protectionism pose uncertainties for the sector, the ministry said.
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