Taiwan manufacturers turn in top performances

2015-04-17

Taiwan’s 1,042 listed manufacturing companies posted best-ever sales, profitability and R&D numbers in 2014, reflecting the strength of the local sector amid stabilizing global conditions, according to statistics released by the Ministry of Economic Affairs April 15.

Based on financial statements published last month by Taiwan Stock Exchange Corp., the MOEA figures show the firms reporting combined sales of NT$23.43 trillion (US$747.73 billion), up 5.1 percent from the year before.

Total net profits surged 26.4 percent to NT$1.25 trillion, the second double digit growth in a row. Average net profit ratio gained 0.9 of a percentage point to 5.3 percent.

“Profitability is particularly strong for the electronic components and parts sector at 12 percent, up 4 percentage points year on year, courtesy of the contributions of the semiconductor and display panel industries,” an MOEA official said.

Such strong showings were mirrored by the firms’ heavy investment in R&D activities during the same period of time, which rose 10.3 percent to NT$546.4 billion.

Among Taiwan’s key sectors, electronic components and parts topped the R&D spending list at NT$267.3 billion, up 15.5 percent, followed by computers, electronics and opticals at NT$184.3 billion. The two sectors accounted for 82.7 percent of the total.

The R&D spending to sales ratio was up for the fourth year in a row, rising 0.1 of a percentage point to 2.3 percent, with electronic components and parts topping 5 percent for the first time.

In terms of individual performances, Taiwan Semiconductor Manufacturing Co. Ltd. continued to lead the pack with NT$56.8 billion in R&D expenditures, up 18.1 percent from the year before. Hon Hai Precision Industry Co. Ltd. trailed at NT$48.9 billion.

MediaTek Inc. surged 63.4 percent to third with NT$43.3 billion. The jump is due to the integrated circuit design house’s investment in long-term evolution telecommunications technology and merger activity. The company’s R&D to sales ratio of 20.3 percent was the highest among the firms.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=229416&CtNode=413)