Taiwan's economic growth rate this year could fall by up to 0.5 percentage points due to the Sept. 21 earthquake, and projections for the growth rate are likely to be set at between 5.5 percent and 6 percent, a leading private think tank said yesterday.
September's industrial production was down 4.85 percent compared to August. Information technology and electronics production was down 0.81 percent compared to August, but up by 9.97 percent from last year, according to the latest monthly report by the Taiwan Institute for Economic Research (TIER,
The island-wide survey was conducted between Oct. 5 and Oct. 22, so the impact of September's earthquake is included in the report.
"The impact of the quake on crucial industries is very limited. The growth rate for this year is likely to be between 5.5 percent to 6 percent," said Wu Rong-I (
"The worst scenario would be a 0.5 percentage point loss in the GNP," Ray Dawn (
September's export orders were valued at US$10.74 billion (the seventh consecutive month the figure exceeded US$10 billion) and the island's trade surplus increased from August's US$840 million to US$1.16 billion.
However, both exports and imports were hurt by the quake. September's export value stood at US$9.56 billion and with imports totalling US$8.4 billion. This was 13.9 percent and 15 percent less, respectively, than in August.
"Ninety percent of Taiwan's imports are semi finished products and raw materials. If exports drop, imports will naturally fall," Wu said.
Meanwhile, the overnight bank rate of 4.83 percent and the exchange rate of NT$32:US$1 have remained fairly stable, but they are both predicted to rise according to the report.
Most industry leaders are positive about the economy for the next six months. The percentage of those who think that the economy will improve increased from August's 35.1 percent to September's 37.6 percent, and those who believe the economy will turn worse decreased from August's 17.9 percent to September's 11.8 percent.
Industries that had a rough time in September but look to improve during the next six months are man-made fibers, plastics, latex, cement, home electronics, telecommuni-cations, machinery, and import-export businesses, according to the TIER.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS