Sales of Taiwan’s computer and information technology (IT) service sector last quarter hit a record high of NT$111.8 billion (US$3.71 billion), a 12 percent year-on-year increase, the Ministry of Economic Affairs said yesterday.
The increase was mostly driven by strong sales from the computer programming industry, which jumped 13.1 percent annually to NT$86.7 billion, a ministry report said.
“Over the course of last year, we witnessed steady and robust growth from the computer programming industry as an increasing number of local companies seek digital transformation,” Department of Statistics Deputy Director-General Wang Shu-chuan (王淑娟) said by telephone, adding that many more firms are boosting their spending in areas such as cybersecurity and switch data networks.
The IT service industry, which contributes about 22.45 percent to the computer and IT service sector, also posted record-high revenue of NT$25.1 billion, an 8.2 percent increase year-on-year, on the back of promotional sales by online auction sites and rising spending on servers, the ministry said.
Overall revenue for the computer and IT service sector expanded 9.7 percent annually to NT$380.4 billion, a record high.
The technical support and professional service sector also posted record-breaking revenue of NT$96.6 billion, following three consecutive quarters of annual declines.
The sector’s recovery was principally due to annual growths of 0.8 and 13.7 percent in the management and consulting industry and the professional design industry, which posted sales of NT$27.3 billion and NT$23 billion respectively.
There were also downturns. Advertising and market research industry sales fell 4.5 percent to NT$43.8 billion, the ministry said.
The technical support and professional service sector saw its revenue slip 0.8 percent from the previous year to NT$331.9 billion.
In other news, the ministry said Taiwan’s rental and leasing sector last quarter reported its highest revenue at NT$36.3 billion, an 8.2 percent increase year-on-year.
Wang said the vehicle leasing sector showed healthy growth, but the machine equipment rental industry continued to slow.
“We are hoping for market demand to recover this year as investments from Taiwanese companies returning home start to materialize,” Wang said.
Total revenue for the rental and leasing sector hit a new high of NT$137.6 billion, a 3.5 percent increase over the previous year.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees