Taiwan's Industrial Production Index Grows 4.8% YoY to 104.34 in Apr.

Mainly fueled by the prospering electronic industry, Taiwan's industrial production index in April grew 4.8% year-on-year (YoY), for the third consecutive month, to 104.34 as an all-time high of the month, according to the latest report by the Ministry of Economic Affairs (MOEA).

Meanwhile, the manufacturing production index surged three months in a row, to 5.21% YoY to 105.29 in the month, a new high as well, shows MOEA's report.

The robust growths were attributable largely to the thriving domestic industry of electronics, whose manufacturing production index stood at 117.01 to represent a 7.22% YoY increase. The industry now contributes nearly 30% to Taiwan's overall manufacturing production.

The sector of PCs and optoelectronics also finished April with a significant growth of 10.43% in manufacturing production index of 88.17, thanks partly to a constant influx of orders for PC peripherals and parts from China and the U.S., and partly to simmering market demand for higher-end cameras worldwide. The MOEA stated that the sector's production is expected to further rise in May, driven by the phase-out of Windows XP that Microsoft announced in April likely to trigger a new wave of PC replacements worldwide in the short term.

MOEA officials noted that Taiwanese makers of semiconductors, ICs, LEDs and photovoltaic materials all ramped up production notably in the month, buoying Taiwan's electronic industry.

Coincidentally, the industry of machinery and related parts, including machine tools, chemical machines, conveying equipment, food making machines, compressors, linear guides and so forth, also showed a 7.98% growth in manufacturing production index of 90.68 in April, primarily on growing willingness among global enterprises to invest in fixed assets.

Compared to the sectors mentioned above, manufacturers of display panels and related components and parts, however, have suffered a persistent downturn as a whole, reflected by the sector's manufacturing production index of 96.69 in the month, down 3.05% YoY. The gloomy climate, MOEA officials said, is caused mainly by growing rivalry from Chinese and Korean competitors in the global market.

With the global economy steadily recovering, the MOEA forecasts Taiwan's overall industrial production index and manufacturing output index both to keep trending upward in May. (SC)