Although manufacturer confidence in the economy declined last month, the industry's faith in the nation's economic performance will improve in the next three to six months, boosted by robust exports, according to a report released by the Taiwan Institute of Economic Research (TIER,
Among the manufacturers polled last month by the institute, only 14.8 percent thought the economy at the time was in good shape, down from 20.5 percent in the previous month, while 38.9 percent said the economy was bad, up from 26.7 percent from December last year.
The results made the manufacturing climate index fall 1.5 points to 102.4 last month, the fourth consecutive decline, the report said.
"The slight drop is related to the Lunar New Year holidays, which shortened the working days and therefore reduced exports," institute researcher Chen Miao (
But with the export sector largely recovered from its rock-bottom performance in the second half of last year, 40.3 percent of manufacturers were optimistic on the economic outlook for the next two quarters, up from 27.5 percent in the previous poll, while pessimists dropped slightly from 13.1 percent to 13 percent, the report said.
Exports, including goods and services, will increase by 7.6 percent this year, making the trade surplus jump 23.82 percent to US$17.1 billion, the report predicted. Export orders hit US$22.11 billion last month, a 20.01 percent increase from a year ago, the latest government statistics show.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to