As stated by the Ministry of Economic Affairs, the ongoing trade war between China and the U.S. continues to impact the manufacturing industry of Taiwan as it was observed how its production value fell again in Q2.
According to the data released by the Ministry of Economic Affairs, the contraction continued for two quarters straight. The total production value of Taiwan’s manufacturing sector from April to June was 3.32 trillion new Taiwan dollars (nearly US$106 billion). This was a decline of 4.57% from the previous year, following the decline of 4.95% year-on-year in Q1.
Electronic component producers experienced a fall of 6.42% in their output value from a year prior to 859.1 billion new Taiwan dollars in the quarter. According to the data, this made up for about 26% of the total of the manufacturing industry.
The Ministry of Economic Affairs, in the electronic component section, stated how the dealers for semi-conductors underwent a fall of 3.13% year-on-year in production value in the same quarter as decreased requirement from end-users of technological equipment was responsible for the fall in shipments of IC makers.
The MOEA added how, because of the decreased prices due to a worldwide supply glut, the output value of flat panel developers, in addition to other electronic equipment categories, fell 13.38% from the previous year.
In spite of fall in outcomes across numerous industries of the sector, output value of the computer and electronic equipment and optical parts industry rose 20.93%, to 188.4 billion new Taiwan dollars. This was the greatest growth rate recorded since 2011’s Q4.
The data also stated how the outcome value of machinery and production equipment declined 10.79% from the previous year to 167.3 billion new Taiwan dollars in the same quarter. This was due to the fact that insecurity in the market decreased the number of orders which the foreign buyers placed.