Total fixed capital investments for this year are expected to grow as the semiconductor sector is gearing up to raise capital expenditure to meet rising demand, the Ministry of Economic Affairs (MOEA) said on Friday.
The ministry said the nation’s fixed capital investments from both the private and public sectors are estimated to reach NT$2.9 trillion (US$96.7 billion) this year, up from NT$2.7 trillion last year.
The ministry cited Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chip maker, as one example among several local integrated circuit related companies to drive the nation’s investments higher.
In mid-April, TSMC announced its plan to raise this year’s capital expenditure to between US$9.5 billion and US$10 billion, from its earlier budget of US$9 billion, to meet demands for sophisticated technology development, including the 20-nanometer process and 16-nanometer FinFET (fin field-effect transistor) process.
The ministry said state-owned companies, such as Taiwan Power Co (台電), are also to raise investments for expansion during the year.
The ministry said fixed capital investments are expected to account for 19.8 percent of total GDP this year, up slightly from 19.6 percent last year.
Last year’s ratio was lower than the average of 21.1 percent in the past 10 years, the ministry said.
Last year, the private sector represented 77.9 percent of the nation’s total fixed capital investments, up 11.3 percent from 2001.
The public sector represented 22.1 percent of total investments last year, down from 33.4 percent recorded in 2001, the ministry said.
The ministry said the increase in private investment during these years shows the private sector has been playing a growing role in the economy.