Taiwan’s economy likely expanded 1.7 percent last quarter, driven in part by technology exports, as global lockdowns and a rising trend in remote work spurred demand for laptops, tablets, and servers, Australia and New Zealand Banking Group (ANZ) said in a report yesterday.
“The tech sector is singularly driving Taiwan’s export performance and is also the focus of the government’s investment drive,” ANZ said.
As a result, the economy is weathering the COVID-19 pandemic better than its peers in the region, it said, adding that the US-China tech decoupling could increasingly benefit Taiwan given its prominent role in Asia’s tech supply chain and its leadership position in advanced fabrication technology.
The Directorate-General of Budget, Accounting, and Statistics is to release advance GDP data for the second quarter today.
Investment was likely the main growth driver during the April-to-June period, with gross fixed capital formation contributing nearly 1.4 percentage points, the report said.
The bank stood by its earlier projection that Taiwan’s economy would rise 1.6 percent this year, with investments adding more than 1 percentage point to the headline, it said.
Taiwan is benefiting from an expected recovery in the semiconductor sector and continued 5G network rollout, which should boost demand for its information and communication, as well as electronic products through the rest of this year and the next, it said.
Taiwan’s tech exports have been relatively more resilient compared with South Korea’s amid the ongoing US-China trade tensions and the pandemic, the report said.
In the first half of this year, Taiwan’s exports edged up 0.5 percent from a year earlier, making it the only economy in Asia to have clocked in positive export growth, the bank said.
Tech exports expanded 15.7 percent, while non-tech exports contracted 14.3 percent during the same period, it said.
In particular, Taiwan’s tech ecosystem is highly driven by demand from US chip design and equipment manufacturers, while leading South Korean tech companies operate via an integrated model, ANZ said.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign