Taiwan’s tech sector surges 19.4% in April

Taiwan’s technology sector is experiencing a resurgence, with leading manufacturers reporting a robust 19.4 per cent year-on-year increase in revenue for April 2024, the NIKKEI Asia reported on Thursday.

This positive trend, driven by strong demand for artificial intelligence (AI)-related servers and semiconductors, marks the second consecutive month of growth for the industry.

Quanta Computer, a leading manufacturer of AI servers, saw its revenue jump an impressive 25 per cent.

Similarly, chipmakers like Taiwan Semiconductor Manufacturing Company (TSMC) enjoyed a record-breaking April with a 59.6 per cent revenue increase fuelled by high demand for cutting-edge AI chips.

While iPhone assembler Pegatron suffered a 16.5 per cent drop, and computer maker Compal Electronics experienced a modest 2.2 per cent decline.

Established chipmakers like United Microelectronics Corp. and ASE Holdings saw modest growth, with a 6.9 per cent and 5.8 per cent increase, respectively.

Excluding TSMC, revenue at four other chipmakers on the list has not yet recovered to pre-2022 levels. These companies will be closely monitoring demand trends in the latter half of the year.

The positive trend extends beyond AI-related products. Asustek Computer, a leading PC manufacturer, saw a 33 per cent revenue increase, partly driven by a rebound from a slow April 2023.

Additionally, display maker AUO also experienced a significant 28 per cent growth following its recent acquisition of German auto parts manufacturer BHTC.

Meanwhile, Hon Hai Precision Industry (Foxconn), a leading contract manufacturer famous for assembling Apple iPhones, reported a 19 per cent revenue increase due to higher demand for cloud-related products.