A steady 80 percent of US firms in Taiwan express confidence in the nation’s economic outlook for the next 12 months, although the pace of growth shows signs of moderation, the American Chamber of Commerce (AmCham) in Taiwan said yesterday.
Meanwhile, optimism regarding the next three years stands at 77 percent, turning slightly more cautious, the annual survey found, as respondents largely agree that Taiwan is a great place to do business, citing its strategic location, stable economy and competitive advantages.
The chamber of over 580 companies and organizations released the results of the survey that was conducted online among its voting members and offers critical insight into the business climate.
Photo: Liao Chia-ning, Taipei Times
Though 82 percent reported stable or increased revenue last year, concerns such as geopolitical tensions, workforce challenges and the pace of regulatory reforms persist, it pointed out.
Respondents particularly underscored the need for a more consistent and transparent regulatory process to enhance the efficiency of law enactment and enhance public communication, the AmCham said.
Regardless, investment intent remains high, with 90 percent of companies planning to maintain or increase their investment amounts in Taiwan, driven by strategic initiatives in digital transformation and innovation, it said.
Human capital continues to be a priority — with a significant focus on skills development — as 60 percent of respondents are committed to enhancing staff training and professional growth, the chamber said.
Despite challenges, 78 percent of companies reported satisfaction with their ability to recruit talent that aligns with business needs though sectorial satisfaction varies, it said.
More than 57 percent of respondents have made formal commitments to achieving net zero or 100 percent renewable energy targets, but 78 percent expressed concerns about the availability of green energy in Taiwan, highlighting a significant area for potential improvement and investment, it said.
The survey revealed that US companies feel less affected than before by cross-Strait tensions, as only 7 percent reported being significantly disrupted by tension last year, the AmCham said.
The phenomenon came because companies are diversifying their supply chains, with 23 percent of respondents reporting business relocation efforts from China in the past five years, seeking to mitigate risks and capitalize on new market opportunities, it said.
The chamber said it aims to discuss the findings with people concerned, as international competition intensifies and the urgency to address these issues and boost Taiwan’s business environment grows increasingly critical.
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
VERTICAL INTEGRATION: The US fabless company’s acquisition of the data center manufacturer would not affect market competition, the Fair Trade Commission said The Fair Trade Commission has approved Advanced Micro Devices Inc’s (AMD) bid to fully acquire ZT International Group Inc for US$4.9 billion, saying it would not hamper market competition. As AMD is a fabless company that designs central processing units (CPUs) used in consumer electronics and servers, while ZT is a data center manufacturer, the vertical integration would not affect market competition, the commission said in a statement yesterday. ZT counts hyperscalers such as Microsoft Corp, Amazon.com Inc and Google among its major clients and plays a minor role in deciding the specifications of data centers, given the strong bargaining power of
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
RSS