June 30, 2004
The Directorate General of Budget, Accounting and Statistics surveyed 1,105 domestic manufacturers in April concerning their investment plans for the second half of the year. The survey reveals that over 90% of electronic component and optoelectronics makers expect their profits to increase and 80% of semiconductor makers see the economy continuing its current growth. Semiconductor fabs also expect the current situation of demand outpacing supply to continue and report that they need to expand investments.
Manufacturers are planning to increase investments as positive economic outlooks lead to greater demand. The value of fixed investments by manufacturers is forecast to increase 61.8% on the year to
NTD 600 billion this year, the second highest level ever. Semiconductor makers intend to invest
NTD 200 billion, while optoelectronic manufacturers are preparing to expand their investments to
NTD 230 billion. Their combined investment value of
NTD 430 billion accounts for over two-thirds of planned investments in the manufacturing sector this year.
The survey reveals that, in addition to accounting for two-thirds of manufacturing investments, electronic component manufacturers are also the most optimistic about the future. Virtually every semiconductor and optoelectronic manufacturer expects to see its profits grow this year. Fifty-two percent of semiconductor enterprises and 75% of optoelectronic makers say their revenues will climb by over 20% this year.
While most optoelectronic enterprises figure they have already achieved an appropriate level of capacity utilization this year, nearly half of semiconductor companies report a situation of underutilization in the first half of this year. Seventy percent of semiconductor plants expect to increase production in the second half of the year due to rising demand. Not a single electronic components manufacturer reported a need to reduce production this year. (DGBAS, Commercial Times, Agencies)
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