Taiwan is heading in the right direction in coping with the global economic slowdown by focusing more on trade with emerging markets, Minister of Economic Affairs Shih Yen-shiang (施顏祥) said yesterday.
However, Taiwan needs to move beyond consolidating established customers in emerging markets by tapping into new commercial opportunities, Shih said, and he promised government support.
“Although it is more difficult to move into emerging markets, with which we’re not as familiar as Japan, the US or Europe, the -government will help develop personal contacts and pool information and resources,” Shih said at a meeting with about 1,300 representatives of Taiwan-based businesses.
The minister said that despite the gloomy global economy, the country’s exports to China and other emerging markets had increased 9.1 percent and 23.2 percent respectively during the first 11 months of the year, compared with the same period last year.
Taiwan’s export growth to India, South Africa and the Middle East respectively has even surpassed that of major trade rivals South Korea and Japan, he said.
Market research firm Global Insight has said emerging markets will grow faster than the rest of the world next year, Shih said, an indication of the leading role they now play in the global economy.
The research firm has projected 5.2 percent growth for emerging markets next year, compared with 2.4 percent growth for the world as a whole. Shih said Taiwan has targeted economic growth of 4.3 percent and export growth of 8 percent to 10 percent for next year, despite potentially difficult global economic conditions.
In related news, Shanghai approved 450 investment projects by Taiwanese firms with a total contract value of US$2.38 billion in the first 10 months of this year, Shanghai municipal officials said yesterday.
The approved Taiwanese investments represented a record high in terms of contract value and accounted for 14 percent of total foreign direct investment in Shanghai during the period, officials said at a press conference.
So far, Shanghai has approved an accumulated 8,600 investment projects by Taiwanese businesses with a total contract value of US$26.83 billion, officials said.
Qu Guoliang (瞿國樑), deputy director of the city’s Taiwan Affairs Office, said that in line with the new economic policies outlined in China’s 12th five-year economic development plan, Shanghai has recently unveiled a series of measures to help Taiwanese businesses.
The measures include providing better financial services to -Shanghai-based Taiwanese enterprises, encouraging them to accelerate business upgrades or transformations, and encouraging enterprises in the innovative and service sectors to take root in the city.
Yu Wenkai (余文凱), head of Shanghai’s foreign investment unit, said the city government has set aside a fund of 400 million yuan (US$63.3 million) aimed at nurturing the service industry, which could be used by Taiwanese businesses.
However, Yu said he could not provide concrete figures on how much Taiwanese firms have benefited from the fund.
Tu Youfu (屠友富), a division head of the city government’s monetary department said that the Shanghai branches of three Taiwanese banks — Cathay United Bank (國泰世華銀行), Land Bank of Taiwan (土地銀行) and First Commercial Bank (第一銀行) — are all performing well and they are expected to qualify to handle yuan-denominated business soon.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,