Following the recent wage increases in China, the Ministry of Economic Affairs (MOEA) is scheduled to hold an investment summit tomorrow aimed at luring more China-based Taiwanese firms to invest at home.
The ministry also hopes the one-day summit at the Taipei International Convention Center can show overseas Taiwanese businesspeople how to take advantage of the nation’s research and development.
“With the economic pact between Taiwan and China, more Taiwanese firms will increase their presence locally,” Ling Chia-yuh (凌家裕), director-general of the ministry’s investment services department, told reporters on Friday.
Some homegrown companies actually gained fame by expanding into China, but they have been there for too long and need government assistance to navigate the investment environment there, Ling said. Officials said the department had seen a surge in inquiries from overseas Taiwanese businesses asking about financing, tax rebates and land allocation, to better diversify their risks by increasing investments in Taiwan.
The rise in inquiries came after Hon Hai Group (鴻海), which operates under the “Foxconn” (富士康) brand and is the world’s biggest contract electronics parts maker, and Japanese carmaker Honda raised their Chinese workers’ pay to cope with labor disputes in the past few weeks.
Hon Hai chairman Terry Gou (郭台銘) told shareholders on June 8 that the group planned to combat the higher wages in China by moving some production lines to Taiwan if the government could provide Hon Hai with attractive labor and other terms at proposed free-trade port areas and special economic zones.
“It is obvious that the labor cost [in China] is no longer low,” the General Chamber of Commerce (全國商業總會) said in a statement on Friday.
“Taiwanese businesses have lost their advantages in setting up factories in China ... Many companies are thinking about relocating some of their production lines back to Taiwan,” the Taipei-based business association said in the statement.
Ling said on Friday that Tingyi (Cayman Islands) Holding Corp (康師傅控股), a Taiwanese-owned company that is the biggest maker of instant noodles in China, is also mulling expanding its production lines in Taiwan and transporting goods from Taiwan to its markets in central and southern China to save costs.
Speakers at tomorrow’s summit will include government and private sector officials, such as spokespeople from optical product maker Ginko International Co (金可國際), carmaker Yulon Group (裕隆集團) and tech gadget retailer CyberMart (賽博數碼).
There will also be consultancy services available for overseas Taiwanese companies on how to apply for a primary listing on Taiwan’s bourse or a secondary listing by issuing Taiwan Depository Receipts (TDRs), the officials said.
MARKET LEADERSHIP: Investors are flocking to Nvidia, drawn by the company’s long-term fundamntals, dominant position in the AI sector, and pricing and margin power Two years after Nvidia Corp made history by becoming the first chipmaker to achieve a US$1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach US$4 trillion. After the emergence of China’s DeepSeek (深度求索) sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence (AI) infrastructure were set to slow, Nvidia shares have rallied back to a record. The company’s biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. Microsoft Corp, Meta Platforms Inc, Amazon.com Inc and Alphabet Inc are
Luxury fashion powerhouse Prada SpA has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked a furor among Indian artisans and politicians thousands of miles from the catwalk in Italy. Images from Prada’s fashion show in Milan last weekend showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century. A wave of criticism in the media and from lawmakers followed over the Italian brand’s lack of public acknowledgement of the Indian sandal design, which is named after a city in the
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
The US overtaking China as Taiwan’s top export destination could boost industrial development and wage growth, given the US is a high-income economy, an economist said yesterday. However, Taiwan still needs to diversify its export markets due to the unpredictability of US President Donald Trump’s administration, said Chiou Jiunn-rong (邱俊榮), an economics professor at National Central University. Taiwan’s exports soared to a record US$51.74 billion last month, driven by strong demand for artificial intelligence (AI) products and continued orders, with information and communication technology (ICT) and audio/video products leading all sectors. The US reclaimed its position as Taiwan’s top export market, accounting for
RSS