Taiwan’s consumer confidence index (CCI) this month rose 0.68 points to 64.38, snapping a nine-month decline, according to a survey by National Central University. The rebound was driven by a sharp 5.15 point rise in sentiment toward stock investment, it said.
Dachrahn Wu (吳大任), head of the university’s Taiwan Economic Development Research Center, attributed the improvement to recent rallies in local stocks, particularly Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), following its major client Nvidia Corp’s approval to resume shipments of its H20 artificial intelligence (AI) chips to China.
Despite the rebound, overall consumer sentiment remained fragile. Confidence in the economic outlook fell 0.46 points to 80.65, its lowest since May 2023, while the employment subindex dropped 0.18 points to 70.53, the survey found.
Photo: CNA
Wu said ongoing uncertainty over the US’ “reciprocal” tariffs on Taiwan could dampen hiring expectations.
“Taiwan’s machinery and tooling sectors are already grappling with foreign exchange losses and sluggish demand,” he said. “If the tariff rate exceeds 20 percent, we may see an uptick in unpaid leave, layoffs and unemployment.”
Meanwhile, Taiwan’s business climate monitor remained in “green” territory for the second consecutive month last month, indicating economic stability. However, its composite score fell to a one-and-a-half-year low, reflecting concerns over rising US tariff risks, the National Development Council (NDC) said in a report yesterday.
The score dropped two points to 29, weighed down by declines in overtime hours and revenue in the wholesale, retail and food service sectors, the NDC said.
Department of Economic Development Deputy Director Chen Mei-chu (陳美菊) attributed the dip primarily to delayed deliveries of imported passenger cars.
“The absence of clear notice regarding Taiwan’s treatment under the upcoming US tariffs has caused businesses to adopt a more cautious approach,” Chen said, referring to Friday’s deadline for the new tariff regime.
With Japan and the EU moving forward with agreements to reduce their tariffs with the US to 15 percent, “Taiwan’s final rate becomes all the more critical,” she added.
Despite this, the broader economic outlook remained resilient. Industrial output, exports and imports of capital goods stayed strong, supported by sustained global demand for AI-driven products, Chen said.
In addition, TSMC’s 2-nanometer chip technology, expected to enter mass production later this year, is anticipated to provide a further boost to exports, she said.
However, non-tech sectors and traditional industries saw weaker shipment momentum, she added.
Overall, the business monitor is expected to remain in green territory for the second half of the year, barring any major external shocks, she said.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
RSS