VR World

Taiwan’s Manufacturing Sector Will Grow 2.93% This Year: Research

The Industrial Economics and Knowledge Center (IEK) said on Jan. 21 that the value of the output of Taiwan’s manufacturing sector is expected to grow 2.93% this year from a year earlier because of the global economic recovery.

IEK’s forecast represented an upward revision of 0.07 percentage points from an earlier estimate as Taiwan is expected to be benefited from an increase in exports on rising global demand.

IEK, a research unit under the Industrial Technology Research Institute, said in its research report that the local manufacturing sector will generate output worth US$610 billion in 2015, up from the estimated US$593 billion last year. IEK said that the plunge in international crude oil prices may help Taiwan’s manufacturing sector decrease its operating costs and bolster its total production value, while the sector should also get a boost from rising domestic consumption.

IEK said that the overall manufacturing sector’s output value is expected to grow 2.32% year-on-year during the first quarter, 2.50% in the second quarter, 3.80% in the third quarter and 3.01% in the fourth quarter. IEK said the anticipated increase in global demand is expected to benefit several information industry segments, including integrated circuits and large-sized TV panels.

The research report showed that the information technology segment is expected to remain the catalyst of growth in the manufacturing sector in 2015, while the segment will see output rise 5.03% from a year earlier to US$197 billion. The 5.03% growth forecast was an upgrade from an earlier projection of a 4.97% rise, IEK said.

For related numbers and figures, the metal or electric equipment segment’s output value for 2015, however, will be expected to reach US$166 billion, up 2.21% from a year earlier. The chemical sector’s output, meanwhile, will be expected to total US$170 billion, up 1.9% from a year earlier.

IEK’s research showed a potential competition for Taiwan’s panel makers and Chinese counterparts, as China has geared up to increase its flat panel capacity. Due to steep fall in crude oil prices, Taiwan’s auto industry may see its sales grow this year anyway.