Taipei, Sep 17 (CNA) With many semiconductor suppliers eager to increase production, the local manufacturing sector reported its highest-ever capital investment results in the second quarter, according to the Ministry of Economic Affairs. .
In terms of revenue, the sector also registered the highest level in the second quarter due to strong global demand for tech gadgets, the MOEA said.
Data compiled by the MOEA’s Statistics Department showed manufacturers’ investment in Taiwan for the second quarter of this year totaled NT$539.7 billion ($17.24 billion), up 25.8 % compared to the previous year and also by 11.6% compared to the previous quarter.
According to the MOEA, fixed assets held by the manufacturing sector include machinery and other production equipment, factories and transport equipment, but exclude purchases of land.
The MOEA said Taiwan’s major semiconductor producers invested funds in capital assets between April and June in a bid to maintain their lead in the high-end process market and meet strong demand for emerging technologies. , such as 5G applications, high-performance computing devices. , and automotive electronics.
The MOEA added that suppliers of memory chips and circuit boards have seriously pushed their capital investments over the same period.
Looking at individual industries, the electronic components industry invested NT$387.3 billion in fixed assets in the second quarter, up 35.9% from a year earlier and 9.1% from compared to the previous quarter, the MOEA said.
The industry accounted for 71.8 percent of total manufacturing capital investment in the second quarter, with semiconductor vendors being the top investors, the MOEA added.
The chemical materials sector came in second place having invested NT$28.1 billion, or 5.2% of the total investment by manufacturers.
Second-quarter investment in the chemical materials sector rose 8.3% from a year earlier and 41.1% from a quarter earlier as semiconductor makers placed large orders for chemical materials for their production, the MOEA said.
In addition, many petrochemical suppliers have also invested heavily in equipment to deploy value-added products, according to the MOEA.
The computer and optoelectronics industry took third place investing NT$14.1 billion in fixed assets in the second quarter, up 1.7% from a year earlier and 16.3% from the quarter. precedent due to the high demand for servers and web communication devices. MOEA added.
Meanwhile, the manufacturing sector recorded a turnover of NT$8.72 trillion, up 10.4% from a year earlier and 4.3% from the previous quarter.
Strong demand for tech gadgets and rising commodity prices in the global market have boosted revenue, according to the MOEA.
The MOEA said the revenue includes Taiwanese manufacturers’ sales generated by their overseas-based production facilities.
The MOEA said that as the semiconductor industry continued to ramp up production and offshore wind developers continued to come up with new projects, capital investment would likely continue to grow.
However, the MOEA warned that geopolitical tensions, rising inflation and inventory adjustments could jeopardize this growth.