Com­pa­nies have fall­ing fixed as­set in­vest­ments

The China Post - - LOCAL - BY JOHN LIU

Com­pa­nies’ fixed as­set in­vest­ment dropped 11.9 per­cent over the past year to register at NT$199.1 bil­lion in the first quar­ter, fall­ing be­low the NT$200 bil­lion mark for the first time in more than five years, ac­cord­ing to a re­port re­leased by the Min­istry of Eco­nomic Af­fairs ( MOEA,

) yesterday. While the amount is lower than the MOEA ex­pected, look­ing at the first quar­ter’s fig­ure alone may not en­able one to see the whole pic­ture, said a gov­ern­ment of­fi­cial.

The de­cline in amount may be caused by com­pa­nies’ shift in in­vest­ment agenda, or sim­ply their tamp­ing down in­vest­ment ac­tiv­i­ties, the of­fi­cial said.

The MOEA said the elec­tron­ics parts and com­po­nents sec­tor made the largest in­vest­ment — NT$127.5 bil­lion in the first quar­ter, of which semi­con­duc­tor fab­ri­ca­tion plants had the high­est ex­pen­di­ture.

The chem­i­cal ma­te­rial busi­ness had the small­est in­vest­ment on the other hand. The amount plum­meted 45 per­cent over the past year to NT$13.3 bil­lion — its low­est level in three years.

Pri­vate In­vest­ment

There were 1,292 pri­vate in­vest­ment cases filed with the MOEA be­tween Jan­uary and May. The to­tal amount surged 52 per­cent in a year to reach NT$577.6 bil­lion, which was in fact 41.26 per­cent of the NT$1.4 tril­lion tar­get the MOEA has set for the year.

It is worth not­ing that nine com­pa­nies made over NT$10 mil­lion in the first five months of the year. They are listed com­pa­nies Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. ( ), AU Op­tron­ics Corp. (

), In­nolux Corp. ( ), Me­di­aTek Inc. ( ), Tai­wan Star Cel­lu­lar Co. ( ), United Mi­cro­elec­tron­ics Corp ( ), Far­glory Group ( ), Inotera Mem­o­ries Inc. ( ). Most of the pri­vate in­vest­ment cen­tered in the elec­tron­ics and in­for­ma­tion tech­nol­ogy sec­tor — NT$226.2 bil­lion, fol­lowed by the me­tal and me­chan­i­cal in­dus­try — NT$145.8 bil­lion, and the con­sumer goods and chem­i­cal in­dus­try — NT$134.7 bil­lion.

New Record in Rev­enues

Thanks to a boom­ing smart­phone in­dus­try, the man­u­fac­tur­ing sec­tor took in more than NT$6.37 tril­lion in sales in the first quar­ter, which was a new record com­pared with the same pe­riod over past years.

The top-per­form­ing com­puter, elec­tron­ics and op­ti­cal equip­ment busi­ness grossed NT$2.18 tril­lion, while the elec­tron­ics parts and com­po­nents to­taled NT$1.27 tril­lion.

The chem­i­cal ma­te­rial busi­ness, and the oil and coal in­dus­try, plunged 10 per­cent and 33 per­cent in rev­enues, re­spec­tively, in the wake of drop­ping oil prices.

The ma­chin­ery equip­ment sec­tor grew 6.4 per­cent thanks to ris­ing de­mand for cars, aerospace­and in­for­ma­tion tech­nol­ogy-re­lated prod­ucts.

The base me­tal in­dus­try dipped 3.6 per­cent due to over­sup­ply, fall­ing steel prices and the eu­ro­zone’s anti-dump­ing pol­icy.

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