Technology firms have fourished amid the COVID-19 pandemic and increased demand for office space, a trend that might continue, Jones Lang LaSalle Inc (JLL) said yesterday.
The top 25 technology firms in the US hired 600,000 more workers between the second quarter of 2020 and the third quarter of last year, lifting their payroll to 1 million and creating demand for 430,000 ping (1.42km2) of office space over the same period, the international property broker said.
The phenomenon could continue, making large Grade A office a focal point in the leasing market, JLL said.
JLL Taiwan managing director Tony Chao (趙正義) shared the same observation for Taiwan, home to the world’s largest suppliers of electronic components used in smartphones, laptops, TVs and vehicles, as well as artificial intelligence and Internet of Things applications.
Technology titans such as Hewlett-Packard Co, Advanced Micro Devices Inc, Alphabet Inc and Line Corp last year increased their office space in Taipei’s Neihu (內湖) and Nangang (南港) districts, as well as in New Taipei City’s Banciao District (板橋) by 4,000 to 5,000 ping, accounting for 65 percent of the overall take-up, Chao said.
Aside from growing demand, the trend has to do with a limited supply of Grade A offices in Taipei, he said.
Technology companies have benefited from the global health crisis, as it has forced companies and organizations to speed up digital transformation and embrace remote work and schooling, he said.
Companies are likely to seek to attract and retain talent by upgrading their working environment in the post-COVID-19 era, making new office buildings more popular, Chao said, adding that technology firms with expansion needs would have no choice but relocate to locations that are not central.
The vacancy rate has dropped to historical lows in central business districts, Chao added.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in