Taiwan factories reap rewards of ‘trade war’

Bloomberg

Taiwan registered stronger industrial production than even the most bullish economist’s forecast as companies benefited from increased US orders and burgeoning demand for 5G smartphones.
Factory output rose 3% in July, compared with estimates for a 0.6% contraction, according to data released by Taiwan’s economics ministry.
The ministry said output represented a record high for the month of July.
Capital goods, such as factory equipment and machinery, showed the biggest increase, as Taiwanese companies shift manufacturing lines back home from China amid the ongoing trade war.
July industrial production was better than expected mainly due to manufacturers of electronics components and computer products expanding domestic output and receiving larger orders from the US, said Wang Shu-chuan, the deputy head of the ministry’s statistics department.
The economics ministry sees Taiwan’s manufacturing output improving further as the peak-demand season for tech products in fall nears and as companies restructure their global supply chains due to the trade war.