Taiwan would continue to enhance its role in global supply chains in a bid to join the US-led Indo-Pacific Economic Framework (IPEF), National Development Council Minister Kung Ming-hsin (龔明鑫) said.
In an interview with Voice of America, Kung said that global supply chains have undergone a restructuring amid US-China trade tensions and the COVID-19 pandemic.
Many Taiwanese companies have remained resilient during the restructuring, Kung said, adding that they benefited from the changes and ensured Taiwan’s economic growth.
Photo: CNA
The nation’s economy last year grew 6.57 percent and is expected to grow 3.91 percent this year, he said.
Taiwanese firms have been moving their production from China to Southeast Asia, North America, and central and eastern Europe, he said, adding that the changes are expected to bolster global supply chains.
Taiwan has become a role model in the global supply chain, and it will continue to bolster the resilience of its investors and strengthen their role in global supply chains, Kung said.
Taiwan is qualified to join the IPEF, he added.
The White House on May 22 announced that Taiwan had not been invited to join the IPEF, which was unveiled by US President Joe Biden a day later during his visit to Asia.
In the first round, 13 economies accounting for about 40 percent of the world’s GDP joined the trade pact: the US, Japan, Australia, New Zealand, Brunei, India, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
US National Security Adviser Jake Sullivan said Washington was looking to deepen its economic relationship with Taipei, in particular on “high-technology issues, including on semiconductors and supply chains.”
The IPEF focuses on four major themes: fair and resilient trade, supply chain resilience, infrastructure, clean energy and decarbonization, and tax and anti-corruption, with further details expected later.
Despite a lack of detail, Kung said the IPEF expresses the US’ intention to return to Asia by mapping out a strategy in the Indo-Pacific region.
Taiwan has already been working to improve its performance in the four areas identified by the IPEF, he said.
Based on the IPEF’s themes, Taiwan would promote building smart cities, improve cross-border privacy and endeavor to achieve net-zero carbon emissions by 2025, he added.
However, the nation cannot develop supply chains and enter new markets on its own, Kung said.
It has to cooperate with other nations, which is why Taipei is keen to seek bilateral or multilateral cooperation in global trade, he said.
Taipei and Washington resumed talks under the Trade and Investment Framework Agreement mechanism last year after a five-year hiatus.
Both sides have also hosted digital economic forums, Kung said.
Taiwan has also begun conducting closer economic exchanges with central and eastern Europe, he said.
US PROBE: The Information reported that the US Department of Commerce is investigating whether the firm made advanced chips for China’s Huawei Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract maker of advanced chips, yesterday said it is a law-abiding company, and is committed to complying with all applicable laws and regulations including export controls. The Hsinchu-based chip giant issued the statement after US news Web site The Information ran a story saying that the US Department of Commerce has launched a probe into TSMC over whether it breached export rules by making smartphone or artificial intelligence (AI) chips for China’s Huawei Technologies Co (華為). “We maintain a robust and comprehensive export system for monitoring and ensuring compliance,” the statement said. “If we
REGIONAL COMPETITION: Over the past few years the Philippines has lost ground to neighbors such as Vietnam, Indonesia and Malaysia, a Philippine official said The Philippines is trying to enlist Taiwanese chip giants to expand in semiconductors, a bid to catch up with its neighbors who are emerging as significant suppliers in the industry. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電) are among companies the Philippines is reaching out to as it seeks equipment and expertise to build out chip fabrication operations, said Dan Lachica, head of the Southeast Asian country’s main electronics industry group, the Semiconductor and Electronics Industries in the Philippines Foundation Inc (SEIPI). The association is working with Philippine officials in Taiwan to talk with potential
DEMAND FOR AI CHIPS: Net income in the third quarter surged 31.2% quarter-on-quarter to NT$325.26 billion, the strongest quarterly return in the company’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday raised its revenue forecast to annual growth of 30 percent this year, thanks to strong and sustainable demand for artificial intelligence (AI) processors for servers. It was the second upward adjustment from 25 percent year-on-year growth estimated three months ago, despite recent concerns about whether the AI boom could be another technology bubble. “The demand is real. It’s real. And I believe it is just the beginning of this demand. Alright, so one of my key customers said the demand right now is ‘insane,’” TSMC chairman and chief executive C.C.
Starbucks Corp might have the more recognizable name, but 7-Eleven’s City Cafe remains the king of Taiwan’s fresh coffee market, helped by the convenience store chain’s extensive market presence and product diversification. President Chain Store Corp (PCSC, 統一超商), which runs both the 7-Eleven and Starbucks store chains in Taiwan, established the City Cafe brand in 2004. The brand took off when actress Gwei Lun-mei (桂綸鎂) became its spokesperson in 2007. City Cafe’s sales exceeded NT$10 billion (US$311.69 million) for the first time in 2015, surpassing the revenue of Starbucks Taiwan, and rose to more than NT$17 billion last year, exceeding the NT$14.98