Taiwan’s manufacturing output last quarter rose for a seventh straight quarter thanks to continued development of emerging technologies and digital transformation, data released by the Ministry of Economic Affairs showed on Friday.

Fully loaded factories run by local semiconductor companies and higher costs of international raw materials also helped push output of the local manufacturing sector upward in the second quarter, the ministry said in a statement.

The manufacturing sector’s output increased 13.57 percent year-on-year to NT$4.51 trillion (US$150.2 billion), the highest number on record for the April-to-June period, the ministry said. That followed a 16.01 percent annual increase in the first quarter, it said.

The increase last quarter was led by the electronic components industry — the manufacturing sector’s most important segment — which posted a jump of 16.35 percent to NT$1.34 trillion, the highest ever for the three-month period, the ministry said.

Chip production increased 40.89 percent to NT$691.2 billion, the highest for a single quarter, as semiconductor companies continued to add capacity while demand for chips used in high-performance computing, the Internet of Things and automotive electronics remained robust, the ministry said.

However, LCD panel production posted an annual decrease of 33.7 percent to NT$157.3 billion given the weakening demand for consumer electronics, it added.

The computer, electronics goods and optical components industries’ output expanded 16.04 percent on an annual basis to NT$256.2 billion on the back of increased production of servers and networking equipment amid robust demand for cloud computing services and thanks to easing supply chain bottlenecks, the ministry said.

Traditional industries such as chemical materials, base metals, petroleum and coal products posted output increases of 7.29 percent, 11.97 percent and 73.28 percent respectively to NT$568.8 billion, NT$502.5 billion and NT$346.8 billion last quarter from a year earlier due to higher international raw material costs, the ministry said.

The machinery equipment industry’s output growth slowed to 5.91 percent last quarter, from the previous quarter’s 14.46 percent, as order increases for semiconductor and automation equipment were offset by reduced production of woodworking machinery and household sewing machines, it said.

Vehicle and auto parts output declined 5.84 percent last quarter, following a 0.83 percent drop in the first quarter, as domestic automakers faced persistent shortages of components due to harsh COVID-19 lockdown measures in China, it said.

The ministry said it is positive about the outlook for the manufacturing sector, as nations reopen their borders and economic activity gradually regains momentum.

However, Russia’s invasion of Ukraine, global inflation and monetary tightening by central banks could undercut global economic growth, while inventory adjustments at domestic firms might also affect local manufacturing output, it said.

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