By Fanny Liu
TAIPEI--Output from Taiwan's factories, utilities and mines rose
to a record high in May, as demand for semiconductors and other
electronic components continued to rise, pointing to an improving
global economy.
The industrial output index--which counts only domestic
production--rose 5.19% year-over-year in May to 109.56, the
Ministry of Economic Affairs said Monday. The median forecast of
seven economists polled by The Wall Street Journal was for a 2.26%
increase. The index gained 5.29% in April.
Taiwan is one of the world's biggest suppliers of electronic
products and components, even though manufacturers from China,
South Korea and Southeast Asia are close on its heels. The island's
output--mostly electronics--is often used to gauge the health of
the global economy.
Semiconductor output rose 11.88%, quickening from 8.09% growth
in April. Taiwan Semiconductor Manufacturing Co., the world's
biggest contract chip maker by revenue, produces advanced
microprocessors exclusively in Taiwan, contributing around 10% to
the index.
Personal computer and smartphone production, however, rose only
0.7% last month.
Although global smartphone and tablet sales have already passed
the stage of explosive growth, orders placed with TSMC's advanced
facilities continue to rise. TSMC, whose latest 20-nanometer
facility is supplying Apple Inc. with a chip called A8, has
forecast strong demand for smaller and more powerful
microprocessors for the rest of this year.
Television panels and related components production, however,
dropped 3.90%--worse than a 2.58% decline in April.
Taiwan's screens have been losing market share to South Korean
and Chinese rivals, which have invested heavily in advanced and
lower-cost technology for years. TV, computer and smartphone makers
in China have also increasingly relied on locally produced panels,
and have placed fewer orders with Taiwanese manufacturers.