Boosted by demand for technology and electronic goods in foreign markets such as Europe, China, and the U.S., Taiwan recorded a 34.7% year-on-year jump in the month of July as per Taiwan News. Of the 37.95 billion USD generated from exports—the highest ever monthly amount generated in Taiwan’s history—electronics accounted for approximately 14.67 billion USD.
Standalone these figures are impressive, but more importantly, these statistics indicate that export numbers have now continually increased for 13 months straight. This historic growth becomes even more notable considering that an analysis from Reuters had only forecasted a rise of 29.5% for July. If this trend continues and demand from international markets is maintained, then Taiwan’s export industry should be able to sustain its success.
Currently, there is a global shortage of semiconductor chips due to high demand throughout several industries that require these electronic components. As reported by Mint, an industry analysis revealed that at least 169 industries will be affected by the supply shortage of semiconductor chips. Given Taiwan’s current disposition, the country’s semiconductor chip manufacturing industry and its subsequent exportation of these components is set to benefit from global demand.
In fact, Taiwanese semiconductor firms are in dire need of manpower and employees. Statistics show that domestic semiconductor companies averaged 27,701 job openings from April to June as per The Taipei Times, which is a 44.4% increase when compared to the second quarter of the previous year. Thus, the demand for the exportation of technology and electronic goods has not only benefited manufacturers but the country’s overall employment rate.
Considering the growing demand for both semiconductor chips and jobs within that industry, Taiwan’s economy via exports will surely benefit. While losses sustained during the course of the pandemic will sting nonetheless, the industry success of semiconductor chips and exportation will set the foundation for strong economic recovery.
Boosting Domestic Investment
Although the semiconductor industry is enjoying considerable success, involved parties are avoiding complacency by further investing in the development of the sector. Specifically, the world’s largest semiconductor foundry, Taiwan Semiconductor Manufacturing Company (TSMC), has issued 9 billion USD in bonds within Taiwan and the U.S. to increase their expansion fund. The allocated amount will also be used for research and development opportunities both domestically and abroad.
Moreover, TSMC in collaboration with local Taiwanese authorities, has also announced plans to create specialized graduate programs which aim to foster manpower and talent for the semiconductor industry. According to Nikkei Asia, a fund of at least 300 million USD over the following years will be spent on this venture to hone talent and increase the number of skilled workers within the sector. Similarly, to boost the local economy and encourage the growth of local businesses, the local government also announced plans to offer 5.34 billion USD in loans to domestic enterprises. Currently, over 50 companies’ loan requests are being reviewed by the Taiwanese Cabinet.
Taking into account that both private companies and local authorities are making an active effort to collaborate for the sake of the semiconductor and export industry, the development of these sectors is in secure hands. By having these parties at the helm of the movement, an increased stake in the worldwide market is imminent.
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