Taiwan tech firms expand capacities to fulfill rush orders from US

By On August 10, 2018

Taiwan tech firms expand capacities to fulfill rush orders from US

Taiwan tech firms expand capacities to fulfill rush orders from US Bryan Chuang, Taipei; Willis Ke, DIGITIMES

Taiwan-based semiconductor and electronics makers are busy expanding their local production capacities, importing more machinery equipment to fulfill robust rush orders from customers, especially in the US, according to Taiwan's National Development Council (NDC).

When presenting a report about Taiwan's economy at a weekly cabinet meeting on August 9, NDC said Taiwan suppliers of silicon wafers, passive components, MOSFETs and optical lenses have rushed to expand their production bases and purchase equipment and materials from abroad to meet sh arp increases in demand from the segments of AI, IoT, 5G and automotive electronics applications. As a result, Taiwan's machinery imports posted a double-digit growth in the first half of 2018.

NDC also noted that the mounting US-China trade spats will more or less undermine Taiwan's export performance, but the country's economic growth in the second half of 2018 can be well driven by some significant domestic investment projects by semiconductor and electronics firms, including: US$10-10.5 billion by Taiwan Semiconductor Manufacturing Company (TSMC) with 70% earmarked for 7nm process upgrades; NT$23.9 billion (US$779.20 million) by Naya Technology to develop 20nm process for memory products; NT$19.2 billion by Winbond Electronics to expand 12-inch wafer foundry capacity; and NT$15 billion by ASE to build a plant in southern Taiwan. The investments are expected to stimulate domestic demand, NDC indicated.

NDC warned that Taiwan businesses may not necessari ly benefit from the US-China trade conflicts. For instance, as Huawei's 5G technologies are advancing fast to pose significant threats to Qualcomm, Huawei's supply chain partners in Taiwan would suffer should the US government decide to boycott Huawei 5G products.

NDC tallies show Taiwan's GDP growth reached 3.16% for the first half of 2018, with the growth exceeding 3% for four consecutive quarters. Combined revenues of all the firms listed on the Taiwan stock exchange broke the level of NT$16 trillion in the same period, up 9.29% on year.

Source: Google News Taiwan | Netizen 24 Taiwan

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