Taiwan’s industrial production index dropped 4.80 percent in September from the same month a year earlier to 132.1, snapping a 31-month streak of year-on-year growth, the Ministry of Economic Affairs (MOEA) said Monday.
The sub-index for the manufacturing sector, which accounts for more than 90 percent of the country’s industrial production, fell 4.83 percent year-on-year to 133.98 in September, also ending a 31-month growth streak, the ministry said in a statement.
The year-on-year declines of the two indexes in September were due to a major slowdown in global growth, which led to falling demand and supply chain inventory adjustments, said Huang Wei-chieh (黃偉傑), deputy director of the MOEA’s Department of Statistics.
For the third quarter, the industrial production index stood at 136.56, the second highest ever for the quarter, but it was down 0.01 percent year-on-year, ending a 12-quarter growth streak.
The sub-index for the manufacturing sector, however, rose 0.03 percent in the quarter from a year earlier to a quarterly high of 138.15, the 13th straight quarter in which the sub-index has risen, according to the MOEA.
In the first nine months of the year, industrial production rose 3.25 percent from a year earlier, while the sub-index for the manufacturing sector grew 3.38 percent year-on-year to a new high of 136.07, according to the MOEA.
Looking at specific industries in September, the production sub-index for electronics component makers dropped 2.97 percent from a year earlier, snapping 34 continuous months of growth since November 2021, Huang said.
Among electronics component suppliers, the semiconductor industry saw production rise 5.93 percent from a year earlier, marking the 35th consecutive month of year-on-year growth.
The sub-index for flat panel production, however, dropped 55.78 percent year-on-year to the lowest level since March 2009, marking the sixth consecutive month of year-on-year declines.
Amid robust demand for data center equipment, the computer and optoelectronics sector saw its production sub-index rise 20.16 percent from a year earlier, the MOEA said.
Among old economy industries, the chemical raw material sector and the base metal industry saw production sub-index declines of 23.82 percent and 22.81 percent, respectively, from a year earlier largely due to weak demand, the MOEA said.
The auto and auto parts sector bucked the downward trend seen among old economy industries, recording a 7.78 percent year-over-year increase due to the launch of several new vehicle models, the MOEA said.
Huang expected industrial production to sustain its growth momentum due to strong demand for emerging apps such as high-performance computing (HPC) devices and automotive electronics and the launch of new consumer electronic devices and international-brand smartphones.
Uncertainty created by the unabated pressure of global inflation and interest rate hikes, the ongoing war between Russia and Ukraine, and China’s ongoing zero-COVID policy, however, could hurt the global economy and Taiwan’s manufacturing production, according to Huang.
The MOEA estimated that Taiwan would see a 2-5 percent year-on-year fall to 130.65-134.65 in the sub-index for the manufacturing sector in October, he said.

Source: Focus Taiwan News Channel