Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday said exports are expected to grow next year despite a high comparison base this year, as corporate demand for artificial intelligence (AI) technology remains strong.
Export growth is expected to continue next year even after the US sets a new tariff rate on Taiwanese goods, Kung said during a legislative meeting in Taipei, citing feedback from firms — including comments by Nvidia Corp CEO Jensen Huang (黃仁勳) — pointing to continued strong demand for AI technologies.
Nvidia last month delivered a surprisingly strong revenue forecast, pushing back on the idea that the AI industry is in a bubble and easing industry-wide concerns.
Photo: CNA
Taiwan is in the final stage of tariff talks with the US, and the two sides have reached a consensus on issues, including semiconductor and automotive tariffs, Kung said.
The government aims to finalize the tariff rate before next month, although the exact timeframe would depend on the negotiation schedules of both sides, he added.
The Taiwan-specific supply chain cooperation model would differ from Japan’s and South Korea’s direct capital investments, Kung said.
Under this model, the government would work with the US to help Taiwanese companies localize operations and offer one-stop services or establish an industry cluster, he said, adding that supply chains would not necessarily be based in the US.
The ministry in a report said that the impact of the US’ 20 percent “reciprocal” tariffs on Taiwan has lessened by about 50 percent from when the tariffs were first announced in August.
Many exporters have already adapted to the new tariffs, and exchange rates and broader conditions have stabilized, Kung said.
Machinery makers reported a year-on-year growth in orders, but some manufacturers — including for woodworking machinery and machine tool makers — continue to feel the effects of the tariffs, Kung said.
Steel and transportation equipment makers are also facing low-price competition from China, he added.
Manufacturers would need to differentiate and upgrade their products to meet these challenges, Kung said.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
RSS