Taipei (CNA) The production value of the local manufacturing sector hit a new high for the third consecutive quarter in the fourth quarter of 2021, driven by strong global demand for electronics, the Ministry of Economic Affairs (MOEA) said Friday.
The output of export-oriented manufacturers in Taiwan rose 25.03 percent from a year earlier to NT$4.32 trillion (US$155 billion) in the October-December period, marking the fifth straight quarter of year-on-year growth, according to data compiled by the MOEA’s Department of Statistics.
For 2021 as a whole, the manufacturing sector’s production value also broke records to reach NT$16.08 trillion, up 26.31 percent from a year earlier, the data indicated.
The MOEA said the sector had benefited from rising demand for tech devices driven by steady global economic growth, and increased product prices due to record-high raw material prices.
Electronics component industry
In the fourth quarter, the local electronics component industry output hit a new high of NT$1.27 trillion, up 20.14 percent from a year earlier, with production value generated by semiconductor suppliers up 25.85 percent at NT$589.4 billion driven by strong demand for 5G applications, high-performance computing devices, and the Internet of Things and automotive electronics, the MOEA said.
In 2021, the production value of the local electronic components industry also reached a record-high of NT$4.75 trillion, up 20.64 percent from a year earlier, according to the MOEA.
Computer and optoelectronics industry
As for the computer and optoelectronics industry, the output rose 13.62 percent from a year earlier to NT$252.9 billion in the fourth quarter, marking the 15th consecutive quarter of year-on-year growth due to strong shipments in storage devices, cloud technology-based gadgets, servers, and wireless communications gadgets, the MOEA said. However, the production of camera lenses for mobile devices saw a drop which limited the industry’s growth in the quarter, the MOEA added.
Last year, the production value of the computer and optoelectronics industry reached NT$909.3 billion, up 10.39 percent from a year earlier, the MOEA’s data showed.
Other industries
The production value of the chemical raw materials, base metal, and machinery industries was NT$541.8 billion, NT$506.4 billion, and NT$209.1 billion, respectively, in the October-December quarter, up 40.28 percent, 54.05 percent, and 21.21 percent respectively from a year earlier, the data indicated.
However, the auto and auto parts industry saw its output falling 3.87 percent from a year earlier to NT$102.2 billion in the fourth quarter largely due to a supply shortage in chips as well as a relatively high comparison base for the same period last year, the MOEA said.
In 2021, the production of the chemical raw materials, base metal, machinery, and auto and auto parts industries rose 53.26 percent, 53.03 percent, 25.62 percent, and 15.31 percent, respectively, to NT$2.05 trillion, NT$1.84 trillion, NT$775 billion, and NT$395 billion respectively, the MOEA added.
Outlook
Looking ahead, Taiwan’s manufacturing sector is expected to enjoy growing momentum in 2022 due to rising global vaccination rates, increased infrastructure investment in many economies, and new technology innovations, said the MOEA.
However, problems such as the potential emergence of new COVID-19 variants, interruptions in the global supply chain, and ongoing port congestions are expected to create uncertainty, the MOEA warned.