Taiwan industrial output posts 1st y/y rise in 6 months in April

TAIPEI, NNA – Industrial production in Taiwan rebounded year-on-year in April, ending five months of contraction, as server manufacturers increased domestic capacity to alleviate the impact of higher tariffs on their shipments from China to the U.S. market amid the trade dispute.

The Ministry of Economic Affairs released the latest industrial production data on Thursday.

Key points:

-- Industrial production in April rose 1.0 percent from a year earlier, led by increases of 0.9 percent in the manufacturing sector and 2.7 percent in the electricity and gas supply sector. Factory output in the first four months of the year fell 3.1 percent y/y.

-- Electronics and optical products registered record monthly output, up 35.6 percent y/y, thanks to Taiwanese server manufacturers ramping up domestic production lines and strong demand for optical components for exports. January-April production for the sector rose 28 percent.

-- Manufacturing output edged up 0.9 percent after a 10 percent decline in March, while slipping 3.2 percent in January-April.

Takeaway:

-- The ministry’s survey of manufacturers showed 12.6 percent were upbeat about May’s industrial production, while 75.6 percent projected output would be flat.

-- Slowing global growth amid the U.S.-China trade row is expected to cap end-market demand, but the move by some Taiwanese firms to relocate factories back to Taiwan from China can support the pickup, the ministry said. New demand may be created by the use of the Internet of Things, high-performance computing and mobile electronics, it said.

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