The Asian Development Bank (ADB) on Wednesday raised its forecast for Taiwan’s GDP growth this year to 6.2 percent, saying that the country’s economic momentum is expected to continue into the second half of the year.
In its latest Asian Development Outlook report, the ADB said the new forecast was an upgrade from its estimate in April of 4.6 percent growth, but it maintained its projected 3 percent growth for next year.
Taiwan saw robust economic growth of 8.3 percent in the first half of the year, the ADB said, citing a 22.4 percent year-on-year increase in exports on the back of high demand for emerging technologies such as 5G applications.
In addition, capital formation expanded by 8.9 percent in the first six months, with massive investments in machinery, transportation equipment, 5G network development and infrastructure for green energy, among other areas, the bank said.
However, private consumption, grew by only 1 percent in the first half of the year, due to a domestic outbreak of COVID-19 in May, it said.
Noting that about 40 percent of the population had received its first dose of a COVID-19 vaccine as of mid-August, the ADB said the disease seemed to be largely contained, which should boost consumer confidence and bode well for private consumption.
“Growth will likely continue for the rest of this year,” the bank said, citing increased manufacturing activity in July, strong growth in industrial production, and solid export orders.
The downside risks include possible new outbreaks of variants of SARS-CoV-2 and delays in the country’s vaccine rollout, it said.
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