Taipei, Industrial production in Taiwan fell for the second consecutive month in January due to lower demand as a result of a global economic slowdown, the Ministry of Economic Affairs (MOEA) said Tuesday.
MOEA data showed that the industrial production index for January fell 1.86 percent from a year earlier to 106.55 after a 1.06 percent year-on-year decline in December.
The MOEA said the drop also reflected a relatively high comparison base over the same period of last year.
The sub-index for the manufacturing sector, which accounts for more than 90 percent of total industrial production, fell 1.92 percent from a year earlier to 107.43, the MOEA said.
Industrial production in January was 3.57 percent lower than the previous month, and after seasonal adjustments, the decline was 3.13 percent, the data showed.
Production in electronics component sector fell 6.92 percent from a year earlier in January in reflection of disappointing smartphone shipments and lower sales of mining devices used for cryptocurrency transactions, according to the data.
Chemical firms suffered a 2.36 percent year-on-year decline in production, while base metal suppliers saw a 3.42 percent drop, amid worry over the trade frictions between the United States and China, which dragged down demand, the MOEA said.
Due to the trade war, production in machinery industry also fell, dropping 3.32 percent in January from a year earlier on weaker demand for equipment such as machine tools and industrial robots, the MOEA added.
The local auto and auto parts industry, meanwhile, reported a 7.01 percent year-on-year decline in production for January, citing growing competition from imported models, according to the ministry.
Bucking the downturn, the computer and optoelectronics industry posted a 32.74 percent year-on-year increase in production amid solid demand for items such as servers, USB drives, and network switches, the data indicated.
The ministry said that in February, industrial production in Taiwan is expected to stabilize on the back of 5G and artificial intelligence development as well as growth in the Internet of Things, automotive electronics and high performance computing products.
Source: Focus Taiwan News Channel