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 other consumer electronic gadgets,” TIER economist Gordon Sun (孫明德) said.
Photo: CNA
Taiwan is home to major suppliers of high-end chips, servers, storage, memory and other devices used in AI tools and solutions.
Exports, the main growth driver, rebounded to increase by 11.4 percent in the first six months and the uptrend would sustain through the second half though the pace would slow due to higher base levels ahead, the Ministry of Finance has said.
Imports, a critical gauge of capital equipment and input material purchases to meet export needs, might rise by 7.29 percent, up from 6.64 percent, the TIER said.
The upward revision came after corporates indicated a stronger interest in acquiring capital equipment to upgrade their technology and expand capacity, Sun said.
Chip giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) last week raised its planned capital expenditure to a range of US$30 billion to US$32 billion, up from a range of US$28 billion to US$32 billion.
The world’s largest contract chipmaker further increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and premium smartphones.
“The releases of next-generation smartphones in September will shed light on whether the AI boom is spreading and sustainable,” Sun said, adding that AI-linked business opportunities would be very limited and benefit a few.
In a related development, the business sentiment gauge among local manufacturers was 98.45 last month, down 2.15 points from one month earlier and snapping six months of gains, the TIER said in a separate report.
The number of firms with positive views rose by 6.2 percentage points to 32.1 percent, but firms with a negative outlook rose by 7.9 percentage points to 23 percent, it said.
Although electronics suppliers are optimistic about their business prospects, makers of chemical, textile and leather products expect business to weaken and producers of steel, metal and machinery products see flat growth, the TIER said.
Business sentiment among service providers ticked up by 0.72 points to 99.21, rising for four consecutive months, as hospitality operators, financial service providers and investors benefited from TAIEX rallies, it said.
The sense of wealth inflation would likely have evaporated this month as a result of rapid and deep share price corrections.
The business confidence measure rose by 3.29 points to 113.04 for construction firms and real-estate brokers, it found, as the government sped up public works projects while housing transactions slowed by 11.5 percent in the six special municipalities due to fewer working days.
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
SEMICONDUCTORS: Taiwan is the company’s fastest-growing market due to growing demand for advanced equipment, Advantest Taiwan chairman Alex Wu said Advantest Corp, the world’s largest chip testing equipment supplier, yesterday said that stronger-than-expected demand from Taiwan Semiconductor Manufacturing Co (台積電) has stretched to far longer than the expected six months, driven by a surge in demand for artificial intelligence (AI) and high-performance-computing (HPC) applications. Normally lead times range from three to four months, but as a majority of AI and HPC chips are packaged using advanced packaging technology, chip-on-wafer-on-substrate, it requires a longer and more complex testing process to ensure every semiconductor die works well before being packaged together, Advantest said. As a result, demand for Advantest’s equipment is running high, the