Taipei--Taiwan's industrial production for April registered a slight year-on-year fall, reversing an eight-month gaining streak, at a time when some consumer electronics vendors were in a product-transition period, the Ministry of Economic Affairs (MOEA) said Tuesday.
The MOEA said that the reduced number of working days in April because of the the four-day Tomb Sweeping holiday also affected Taiwan's industrial production.
In April, the industrial production index fell 0.59 percent from a year earlier to 102.05 after a year-on-year increase of 3.68 percent seen in March, the MOEA said. The April production fell 9.99 percent from March.
April caught the market off guard, since the MOEA had previously anticipated that the index would continue to move higher at a single-digit pace compared with a year earlier.
The sub-index of the manufacturing sector, which accounted for more than 90 percent of the total industrial production in Taiwan, rose only 0.79 percent from a year earlier, moderating from a year-on-year increase of 4.70 percent.
The April figure for the manufacturing sector was down 10.02 percent from a month earlier, the MOEA said.
The ministry said that production of computer/computer peripherals and optoelectronics products fell 19.93 percent from a year earlier and also shed 21.75 percent from a month earlier, which had an adverse impact on the entire manufacturing sector as well as the broader industrial sector.
The ministry said that the falls in production for the segment also reflected a shortage of critical components for computer manufacturing.
Production of electronic components for April rose 5.34 percent from a year earlier, with production of semiconductor firms and flat panel suppliers up 10.97 percent and 14.74 percent, respectively, from a year earlier, the MOEA said.
On a month-on-month basis, production of electronic components fell 9.28 percent, with output of semiconductors and flat panels down 10.08 percent and 17.16 percent, respectively, the MOEA added.
Base metal firms benefited from an increase in shipments in steel products, witnessing production in April rising 4.38 percent from a year earlier. However, the April sub-index fell 5.54 percent from a month earlier, the MOEA said.
The ministry said that production of machinery suppliers rose 7.04 percent from a year earlier but fell 10.40 percent from a month earlier, while production of the auto industry grew 9.69 percent year-on-year, but dropped 11.77 percent month-on-month.
Looking ahead, the MOEA said that the second quarter remains a traditional slow season in the global electronics market, so that Taiwan's industrial production could continue to feel the pinch.
Market conditions are expected to improve in the second half of the year, when demand for high-end semiconductors will become stronger, the MOEA said.
Source: Focus Taiwan News Channel