A majority of German companies in Taiwan expect their business to pick up in the next 12 months and none of them expect their operations to soften, a global survey by the German Chambers of Commerce Abroad (AHK) showed yesterday.
The AHK conducted the poll via its 140 branches in 92 countries from March 17 to April 9. The results reaffirmed those of a confidence survey conducted in February by the German Trade Office Taipei.
The AHK poll found that 62.8 percent of German companies in Taiwan said they expect their business to improve in the coming 12 months, while none had a grim outlook.
The survey found that 44.2 percent of respondents plan to increase their workforce in Taiwan, while none of them intend to reduce headcounts.
Asked about Taiwan’s economic outlook over the next 12 months, the companies were more optimistic than the February survey, with 74.5 percent saying the economy would gain significant momentum.
That is 11.2 percentage points higher from the previous survey, the office said.
Despite the rosy sentiment, respondents in the AHK survey identified some challenges ahead, led by concerns over a drop in demand at 48.8 percent, trade barriers at 34.9 percent and foreign-exchange volatility at 25.6 percent, it said.
Several Taiwanese firms have sounded the alarm about potential overbooking by global customers to ensure supplies amid the COVID-19 pandemic, a phenomenon that could be augmenting component and material shortages, as well as shipping bottlenecks.
When asked about the effects of the pandemic on their business operations, 68.3 percent named travel restrictions as the top headache, 26.7 percentage points higher than the previous survey, the office said, adding that travel freedom is important for maintaining and expanding business relations.
Supply chain disruptions ranked as the No. 2 problem at 51.2 percent, followed by cancelations of trade fairs and events at 36.6 percent, the survey found.
Regardless, 32.6 percent of the firms plan to increase investment in Taiwan, while only 2.3 percent plan to reduce investment, it said.
The survey found that 41.5 percent of respondents expect Taiwan’s economy to return to normal in the second half of this year, while 22 percent said it could happen in the first half.
JITTERS: Nexperia has a 20 percent market share for chips powering simpler features such as window controls, and changing supply chains could take years European carmakers are looking into ways to scratch components made with parts from China, spooked by deepening geopolitical spats playing out through chipmaker Nexperia BV and Beijing’s export controls on rare earths. To protect operations from trade ructions, several automakers are pushing major suppliers to find permanent alternatives to Chinese semiconductors, people familiar with the matter said. The industry is considering broader changes to its supply chain to adapt to shifting geopolitics, Europe’s main suppliers lobby CLEPA head Matthias Zink said. “We had some indications already — questions like: ‘How can you supply me without this dependency on China?’” Zink, who also
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) received about NT$147 billion (US$4.71 billion) in subsidies from the US, Japanese, German and Chinese governments over the past two years for its global expansion. Financial data compiled by the world’s largest contract chipmaker showed the company secured NT$4.77 billion in subsidies from the governments in the third quarter, bringing the total for the first three quarters of the year to about NT$71.9 billion. Along with the NT$75.16 billion in financial aid TSMC received last year, the chipmaker obtained NT$147 billion in subsidies in almost two years, the data showed. The subsidies received by its subsidiaries —
At least US$50 million for the freedom of an Emirati sheikh: That is the king’s ransom paid two weeks ago to militants linked to al-Qaeda who are pushing to topple the Malian government and impose Islamic law. Alongside a crippling fuel blockade, the Group for the Support of Islam and Muslims (JNIM) has made kidnapping wealthy foreigners for a ransom a pillar of its strategy of “economic jihad.” Its goal: Oust the junta, which has struggled to contain Mali’s decade-long insurgency since taking power following back-to-back coups in 2020 and 2021, by scaring away investors and paralyzing the west African country’s economy.
RE100 INITIATIVE: Exporters need sufficient supplies of renewable energy to meet their global commitments and remain competitive, the economics ministry said Local export-oriented manufacturers, including Taiwan Semiconductor Manufacturing Co (台積電), require sufficient supplies of green energy to maintain their competitiveness and regulations already ensure that renewable energy development adheres to environmental protection principles, the Ministry of Economic Affairs said yesterday, as the legislature imposed further restrictions on solar panel installations. The opposition-led Legislative Yuan yesterday passed third readings to proposed amendments to three acts — the Environmental Impact Assessment Act (環境影響評估法), the Act for the Development of Tourism (發展觀光條例) and the Geology Act (地質法) — which would largely prohibit the construction of solar panels in some areas. The amendments stipulate that ground-mounted solar
RSS