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Electronic Components Industry in Taiwan up 22% Due to 5G and Distance Learning Computer Demand

24.6.2020
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The electronic components industry in Taiwan reported a rise of 22.15 percent on the back of faster deployment of 5G technology and high-performance computing.

Largely dependent on Taiwan nation’s manufacturing sector, industrial production grew last month due to an increase in output from the electronic components industry, and the computer, electronic goods and optical components industry, the report said.

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Making up more than 40 percent of production within the manufacturing sector, the electronic components industry reported a 22.15 percent year-on-year surge in output, marking its the sixth consecutive month of double-digit annual increase, the ministry said.

The industry’s growth was due to the accelerating deployment of 5G technology and high-performance computing, the ministry said, adding that distance learning and remote work driven by the COVID-19 pandemic continued to play an important role in the industry’s robust output.

Production of integrated circuits soared 36.01 percent year-on-year last month, while that of LCD panels and related parts increased 6.15 percent, data compiled by the ministry showed.

Output from the computer, electronic goods and optical components industry increased 9.8 percent year-on-year.

Propelled by an increase in demand for servers, laptops, network and communication devices, and computer equipment due to lockdowns worldwide, the industry’s growth was nevertheless somewhat hampered by waning demand for smartphones amid a sluggish global economy, the ministry said.

Industrial production last month increased 1.51 percent year-on-year, the smallest annual increase in four months, the Ministry of Economic Affairs’ Department of Statistics said in a report yesterday.

As COVID-19 continues to spread, dampening market sentiment and causing companies to shelve their investments, Taiwan’s non-tech industries remain the nation’s worst-hit victims.

Last month, the machinery equipment, base metal and metal parts industries reported a 15.37 percent, 9.81 percent and 18.44 percent annual decline in output respectively, ministry data showed.

While suffering from diminishing market demand, other traditional sectors have also taken a beating from falling international oil prices.

The chemical materials, and the petroleum and coal products industries posted output declines of 9.06 percent and 28.17 percent for last month respectively.

The automobile and auto parts industry reported its largest decline in output since the financial crisis of 2009 with a 29.52 percent annual drop.

The textile industry reported a 35.38 percent year-on-year decline in output, also its largest decline since 2009.

Source: Taipei Times

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