By Angelica Oung
Staff reporter
Revenue in the computer and information technology (IT) services sector rose 11 percent year-on-year to NT$105.7 billion (US$3.8 billion) in the second quarter of this year, the highest second-quarter figure on record, on the back of work-from-home demand, the Ministry of Economic Affairs said on Tuesday.
Photo: Lai Hsiao-tung, Taipei Times
The increase was mostly driven by strong sales in the computer programming industry, which jumped 9.7 percent annually to a record NT$78.9 billion, as remote work arrangements required firms to deploy network storage servers and boosted demand for information security and network architecture products, the ministry said in a report.
Department of Statistics Deputy Director-General Huang Wei-jie (黃偉傑) said that work-from-home needs extended beyond demand from employees upgrading office equipment.
“Businesses seeking to accommodate work-from-home needs had to widely upgrade their corporate IT equipment such as servers and data protection,” Huang said. “Software and hardware demands for network architecture grew, leading to growth in the computer programming industry.”
The IT services industry’s sales rose 14.7 percent to NT$26.8 billion, also a record increase, as Web design and management fees increased, and digital advertisement sales soared, the report said.
In the first half of the year, the computer and IT services sector posted record combined revenue of NT$209.2 billion, up 12.4 percent year-on-year, the ministry said.
The computer programming industry’s revenue rose 11.3 percent from a year earlier to NT$157.1 billion, while the IT services industry increased by 15.8 percent to NT$52.1 billion, it said.
However, the technical support and professional services sector’s revenue declined 1.1 percent from a year earlier to NT$74.1 billion, the ministry said.
The sector’s performance was affected by sales declines of 11.9 in the photography industry, and 7.2 percent in the advertising and market research industry, which posted revenues of NT$1.7 billion and NT$34.4 billion respectively.
Within the sector, revenue in the professional design industry rose 6.2 percent to NT$17.2 billion, as demand for interior, exhibition and industrial design expanded, while revenue in the management and consulting industry increased 5.4 percent to NT$20.8 billion, also a record, attributable to growing business for consulting across domains such as corporate finance, human resources management and energy consumption, the ministry said.
Overall, the technical support and professional services sector reported first-half revenue edging up 0.4 percent to NT$144.6 billion, the ministry added.
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
‘SACRED MOUNTAIN’: The chipmaker can form joint ventures abroad, except in China, but like other firms, it needs government approval for large investments Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) needs government permission for any overseas joint ventures (JVs), but there are no restrictions on making the most advanced chips overseas other than for China, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. US media have said that TSMC, the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc and Nvidia Corp, has been in talks for a stake in Intel Corp. Neither company has confirmed the talks, but US President Donald Trump has accused Taiwan of taking away the US’ semiconductor business and said he wants the industry back