Manufacturing sector output forecast to hit new high in 2022 – Focus Taiwan

Taipei, June 11 (CNA) The production value of the local manufacturing sector is expected to rise by more than 6 percent from a year earlier and hit a record high in 2022 as Taiwanese tech exporters will continue to benefit from strong global demand and massive investments, according to the government-sponsored Industrial Technology Research Institute (ITRI).

In an online forum held on Friday to discuss the business climate among local manufacturers, industrial sustainability, and zero emissions, Chen Chia-ying (陳佳楹), an analyst at ITRI’s Industrial Economics and Knowledge Center (IEK), said the global economy was facing uncertainty caused by Russia’s invasion of Ukraine, China’s lockdowns against COVID-19 infections, and rising inflation.

However, for many export-oriented manufacturers in the country, Chen said, their output will continue to trend higher with the local economy expected to grow in a steady manner in the wake of solid global demand as well as an increase in private investments.

Citing the IEK-CQM model, Chen said the production value of Taiwan’s manufacturing sector is expected to total NT$25.8 trillion (US$871 billion) for this year, up 6.04 percent from a year earlier with the four major industries forecast to see an increase in output.

The information and electronics industry is expected to generate NT$10.32 trillion in production value in 2022, up 9.28 percent from a year earlier, according to the IEK forecast.

The industry was expected to continue to benefit from strong shipments in gadgets used in emerging technologies such as 5G applications, artificial intelligence of Things (AIoT), high performance computing devices and automotive electronics, which is likely to lead to higher demand for semiconductors and other electronics components, said Chen.

In the metal and mechatronics industry, Chen said, the production value is expected to rise by 6.08 percent from a year earlier to NT$7.37 trillion in 2022 in the wake of the rising popularity of production automation, smart manufacturing and renewable energy development.

The output of the light industry, such as textile supplies, is expected to rise by 2.64 percent from a year earlier to NT$2.76 trillion in 2022 as many clients of Taiwanese textile exporters will resume their efforts in rebuilding inventories, Chen said.

Chen said the chemical industry is expected to post NT$5.35 trillion in production value in 2022, up 1.92 percent from a year earlier as the growth will moderate due to a relatively high comparison base a year earlier, while international crude oil prices will stay at highs before moderating from the third quarter.

Despite an expected increase in output in 2022, the analyst said the local manufacturing industry should remain alert over the risks from geopolitical tensions and the impact from the COVID-19 pandemic.

Meanwhile, the IEK also forecast that Taiwan’s renewable energy industry is expected to generate about NT$209.5 billion in production value in 2022, up 5.7 percent from a year earlier, which would be the first time in five years that the industry’s output had exceeded the NT$200 billion mark.