By Fanny Liu
TAIPEI--Taiwan's industrial output hit a new high in October,
though the government warned that holiday-season stockpiling of
iPhone and gadget components may have already peaked.
The index that measures output from domestic factories,
utilities and mines rose 8.97% on year in October to 112.56, the
Ministry of Economic Affairs said Monday. The median forecast of 10
economists polled by The Wall Street Journal was for a 7.7%
increase. The index rose 10.16% in September.
Industrial output has grown 5.94% so far this year, as Taiwanese
electronics manufacturers are riding high on Apple Inc.'s (AAPL)
release of new smartphones and the global rollout of faster
fourth-generation mobile networks. Continued recovery in export
markets, particularly the U.S., has started to lift the island's
production.
Monday's data echoed export orders reported on Thursday, which
also hit new high in October. Output data counts only domestic
production, while export orders include overseas Taiwanese
factories, many of which are Apple's key suppliers such as Hon Hai
Precision Industry Co., commonly known as Foxconn.
In October, semiconductor output rose 32.47% from a year earlier
to a new monthly high, quickening from a 29.65% increase in
September, the ministry said. Taiwan Semiconductor Manufacturing
Co.'s (2317.TW)shipments of microprocessors to Apple, which started
in late June, have added heft to the island's semiconductor
production.
But Taiwan's government warned Monday that semiconductor output
had peaked in October and likely will drop this month, as most
device makers had already stocked up the components they needed for
sales this year. Some economists have projected the boost from new
iPhones and other devices would cool toward the end of this
year.
Output of personal computer and smartphone components rose
17.69% last month, following a 19.26% increase in September. Recent
growth came from robust orders for camera lenses by smartphone
makers and amid fresh demand for personal computers after Microsoft
Corp. phased out its old operating system earlier this year.
The production of television panels and related components was
down 0.94% in September, reversing a 5.07% rise in the previous
month.
Write to Fanny Liu at fanny.liu@wsj.com
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