Taiwan’s industrial production index rose 1.51 percent year on year to 110.18 in May, spotlighting growth momentum of the local electronics industry, according to the Ministry of Economic Affairs June 23.
Of the four subindexes comprising the overall benchmark, manufacturing—worth nearly 92 percent of the weighting—picked up 1.68 percent from a year ago while quarrying and mineral extraction rose 10.72 percent. In contrast, water supply dipped 0.1 percent and electricity and gas supply reported losses of 1.63 percent.
A breakdown of manufacturing revealed electronic components and parts surged 22.15 percent, reflecting a six-month double-digit gain. Computers, electronics and optical products similarly saw a rise of 9.8 percent.
According to the MOEA, components orders have received a boost from emerging technologies such as 5G networks and high-performance computing devices. Also contributing to the rise was increased demand for chips, dynamic random access memory and liquid crystal panels caused by the recent spike in remote work and online learning, the ministry added.
Another factor accounting for the uptick in electronics production is increased need for internet servers and network communication devices by businesses relocating their operations to Taiwan from overseas, the MOEA said.
The country’s manufacturing sector is expected to continue growing apace in June, supporting overall industrial production, the MOEA said, adding that it cautioned the COVID-19 pandemic and friction between China and the U.S. may cast uncertainties over the country’s economy going forward. (YCH-E)
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