The US remained the largest debtor to Taiwan’s financial holding firms in the second quarter, despite a significant drop in exposure, data released on Sunday by the Financial Supervisory Commission (FSC) showed.
Financial holding firms’ total exposure to the US reached NT$9.56 trillion (US$319.54 billion) at the end of the second quarter, a NT$792.3 billion decline from the previous quarter.
Analysts attributed the drop, the steepest quarterly decline since records began in 2015, to US tariffs and a stronger New Taiwan dollar against the US dollar.
Photo: Reuters
International exposure includes interbank loans, lending and investment activities by Taiwan’s financial holding firms.
By the end of June, total international exposure by Taiwan’s financial holding firms fell to NT$27.02 trillion — a drop of NT$2.09 trillion, or 7.2 percent, from the end of March — the sharpest quarterly decline since records began.
China remained the second-largest debtor to Taiwan’s financial holding firms, with exposure falling to NT$1.896 trillion at the end of June, down NT$149.9 billion from the previous quarter, driven by simultaneous drops in interbank loans, lending and investments, the FSC said.
After the US and China, France ranked third in exposure at NT$1.28 trillion, followed by the UK at NT$1.27 trillion, Australia at NT$1.19 trillion, Japan at NT$1.13 trillion, South Korea at NT$1.07 trillion, Hong Kong at NT$925.6 billion, Canada at NT$867.4 billion and the United Arab Emirates at NT$561.9 billion, the data showed.
Among the top 10 debtors, Japan was the only country with a quarterly increase in exposure to Taiwanese financial holding firms, rising NT$12.31 billion due to increased investment, the FSC said.
While overseas exposure declined, Taiwan’s financial holding firms increased their domestic exposure by NT$1.12 trillion to NT$47.56 trillion at the end of June, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has secured three construction permits for its plan to build a state-of-the-art A14 wafer fab in Taichung, and is likely to start construction soon, the Central Taiwan Science Park Bureau said yesterday. Speaking with CNA, Wang Chun-chieh (王俊傑), deputy director general of the science park bureau, said the world’s largest contract chipmaker has received three construction permits — one to build a fab to roll out sophisticated chips, another to build a central utility plant to provide water and electricity for the facility and the other to build three office buildings. With the three permits, TSMC
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
RSS