Taiwanese industrial production gained for fourth month

01-25-2010 14:28

The Taiwanese industrial output rose for a fourth straight month, spurred by increasing orders for computers, cell phones and electronics components. Industrial production climbed 47.3% in December in the yearly comparison, following an adjusted increase of 31.4% in November , according to the Ministry of Economic Affairs. The median of 9 forecasts showed a 40.9% rise.

GDP

The international economy has boosted Taiwanese companies, as exports cover more than 50% of the Taiwan’s GDP, to prompt industrial production and increase jobs. Prime View International Co., the leading small and medium display provider and the world’s highest volume supplier of ePaper display modules, will probably triple its production capacity in 2010 as a result of increasing orders, the company’s chairman, Scott Liu, stated last week in an interview.

The Taiwanese GDP declined 1.29% from July through September compared to the previous year, which is the most modest contraction in twelve months, as increasing Chinese demand for electronic products indicates that Taiwan could find its path out of recession shortly. Exports rose 46.9% in the last month of 2009, which is the biggest jump in more 14 years.

Improvement electronics sector

Economist Wai Ho Leong at Barclays Capital commented: “Increasing industrial production is primarily boosted by the improvement in the electronics sector. Enhanced foreign demand provides support to companies.”

Production

Output at electronic producers advanced 50.2% in the yearly comparison, following a 34.4% increase in the previous month. The quarrying and mining production gained 13.1%, while production in the construction sector rose 11.4%.

Factory equipment

Taiwan Semiconductor Manufacturing Company, the world’s largest dedicated independent semiconductor foundry, stated in December that investments in factory equipment in 2010 will exceed last year’s $2.7 billion, and that it has plans to hire more than 3.000 engineers.

Joblessness

Joblessness on the island fell for a third consecutive month in December due to exporters recruiting more employees to meet enhanced global demand for Taiwan’s electronic products.
Monday’s data were published after the trading session on the stock exchange closed. The Taiwan Capitalization Weighted Stock Index (TAIEX) dropped 0.7% to 7,872.99. The Taiwan Dollar gained 0.1% to T$31.949 against the Greenback at 2:49 p.m. local time, Taipei Forex Inc. reported.