News Column

Manufacturers’ profits surge in Q1: ministry

May 27, 2014 (

TAIPEI, May 28 (GCTL) - Taiwan's publicly listed manufacturing companies saw their net income increase by an annual 15.3 percent to NT$240.8 billion (US$7.98 billion) in the first quarter, the Ministry of Economic Affairs said on Monday.

The rise in manufacturing firms' profits in the first three months of the year from the same period last year reflected increased profitability in the wafer foundry sector, signs of a turnaround in the solar industry and the steady recovery of DRAM chipmakers, the ministry said in a statement.

According to the ministry, the total revenue of manufacturing firms listed on either the Taiwan Stock Exchange or GRETAI Securities Market gained 3.6 percent annually to NT$5.31 trillion in the first quarter, driven by the computer, electronics and optoelectronics industries, as well as the electronic components sector.

"Total revenue in the computer, electronics and optoelectronics industries rose 2.9 percent annually in the first quarter, on the back of the ongoing global economic recovery and strong demand for consumer electronic products," the ministry's statement said, Taipei Times reported.

"In the electronic components sector, total revenue increased 3.8 percent year-on-year in the first quarter thanks to rising demand for mobile devices, which continuously drove up production in the wafer foundry and semiconductor packaging supply chains," it added.

The latest batch of government data came as industry watchers said listed firms' improved first-quarter results were led by the upstream technology sector — especially semiconductor firms — and selective hardware components suppliers.

Led by Taiwan Semiconductor Manufacturing Co (TSMC), Advanced Semiconductor Engineering Inc and Siliconware Precision Industry Co, most semiconductor companies showed above-seasonal performance in the first quarter and have offered positive investor guidance for the current quarter.

Meanwhile, optical lens makers — led primarily by Largan Precision Co and Newmax Technology Co — remained the best performers in the hardware components industries, posting 27 percent year-on-year revenue growth and a 880 basis point increase in operating margin, according to a Credit Suisse Group AG report published last week.

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Source: GCTL Insights Magazine (China)

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