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Economy

Taiwanese tech sector revenue jumps 13% in July

Leading indicator for global IT industry so far unscathed by trade war

Foxconn Technology Group boosted revenue 25% in July on its server business.   © Reuters

TAIPEI -- Sales at Taiwan's 19 largest information technology companies rose 13.5% in July from a year earlier, the largest monthly gain this year, suggesting hardly any impact from the U.S.-China trade war.

Combined sales totaled 963.1 billion New Taiwan dollars ($31.2 billion), with 13 of the 19 companies reporting higher revenue. That's the fifth straight month of increased sales, and an improvement on 4% growth in June.

Because many in Taiwan's tech sector are contract electronics manufacturers working for the likes of Apple and Chinese smartphone maker Huawei Technologies, investors worldwide consider the monthly revenue data a leading indicator of the health of the global tech industry.

Foxconn Technology Group, formally known as Hon Hai Precision Industry, was the biggest driver. The iPhone assembler boosted revenue 25.5% on the year to NT$395.5 billion, an all-time high for July. Although demand for assembling Apple's newest smartphones has yet to enter the peak season, business related to servers and other offerings apparently surged.

The top four contract electronics makers, including Foxconn and Pegatron, all turned in higher sales in July. Sales at Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, climbed 3.8%. Though demand for semiconductors used in cryptocurrency mining has softened, orders for high-performance chips for servers were strong, as was demand for automotive chips.

 

Nanya Technology, a DRAM memory producer, saw revenue surge roughly 90%. Sales at chip designer and developer MediaTek climbed nearly 10% on brisk demand from smartphone makers.

Liquid crystal display suppliers suffered sale declines. AU Optronics' sales fell 8.4% while revenue at Foxconn affiliate Innolux dipped 0.7% amid a moderate recovery for television panels.

Largan Precision's revenue rose about 20% thanks to its optical lenses for mobile phones. Demand from Apple has yet to shift into high gear, but Chinese demand for high-quality lenses is expanding.

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