Taiwanese business leaders remain broadly optimistic about economic prospects this year, but rising uncertainty over US trade policy, persistent talent shortages and uneven returns from artificial intelligence (AI) investment are reshaping corporate strategies, according to a CEO survey released yesterday by PricewaterhouseCoopers (PwC) Taiwan.
The survey, which gathered responses from 216 local corporate leaders, found that 44 percent view tariffs as a “high-level threat,” underscoring Taiwan’s vulnerability to shifting global trade policies amid renewed pressure linked to US President Donald Trump’s tariffs.
“US tariffs, geopolitics and technological disruption are reshaping competition and testing leadership, as returns from AI investment lag and talent shortages persist,” PwC Taiwan chairman and CEO Patrick Hsu (徐聖忠) said.
Photo: Clare Cheng, Taipei Times
Taiwanese firms are responding more aggressively than global peers to geopolitical risks, as nearly 40 percent plan to increase investment in the US, up 12 percentage points from last year, driven mainly by semiconductor and electronics firms.
The US has emerged as the top investment destination globally, across the Asia-Pacific region and in Taiwan, the survey showed.
Despite external risks, confidence remains steady. PwC found that 50 percent of local CEOs expect global economic conditions to improve this year, unchanged from last year. Taiwan’s outlook appears comparatively strong, with 63 percent of respondents expressing confidence in the domestic economy, supported by sustained demand related to AI applications.
Talent shortages remain the most pressing concern. More than half of respondents, or 52 percent, cited access to critical skills as the biggest threat over the next year — more than double the global average of 22 percent.
While AI adoption has accelerated, financial returns remain mixed. Over the past year, AI contributed to revenue growth for 27 percent of Taiwanese firms, while 22 percent reported cost reductions. However, 54 percent said they have yet to see meaningful financial returns from AI investments.
At the same time, industry boundaries continue to blur. Over the past five years, 47 percent of Taiwanese companies expanded into new business domains, a trend expected to speed up through mergers and acquisitions.
Innovation also emerged as a key challenge, with 55 percent of local respondents citing it as a major concern. Yet only 42 percent said innovation is embedded at the core of their corporate strategy.
PwC Taiwan said that companies with stronger innovation capabilities have delivered significantly better results, with half expanding market share over the past five years, compared with just 30 percent among less innovative peers.
“Innovation is not only a growth engine, but also a defensive moat for sustaining market leadership,” PwC Taiwan said.
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