Taiwan’s consumer confidence inched higher this month, supported by robust exports, even as sentiment toward stock investment fell to a five-month low amid concerns over a potential artificial intelligence (AI) bubble, according to a survey released yesterday by National Central University.
The consumer confidence index rose 0.69 points to 64.65, with five of six subindices hitting six-month highs.
“The broad sentiment improvement is closely linked to strong export momentum, which lent support to the economy and family finances,” said Dachrahn Wu (吳大任), head of the university’s Research Center for Taiwan Economic Development, which conducts the monthly survey.
The impressive export performance has played a major role in lifting GDP growth toward 6 percent this year, providing stability for the labor market and household consumption, Wu said.
The drop in stock investment confidence largely reflected profit-taking after the TAIEX repeatedly reached record highs last month, he said.
Meanwhile, the consumption of durable goods also rebounded, apparently aided by eased real-estate lending rules for first-time homebuyers and relocators, Wu said.
Automobile and motorcycle sales also recovered from earlier tariff-related weakness, he said.
However, Wu cautioned that uncertainties remain, including the risk of an AI-driven market bubble and Taiwan’s ongoing trade negotiations with the US.
In a related development, the government’s business climate gauge last month remained in the “yellow-red” expansion zone for a second consecutive month, indicating sustained economic growth, the National Development Council (NDC) said in a report yesterday.
The council’s composite monitoring indicator rose to 35 from a revised 34 in September, bolstered by surging equities and strong demand in the tech sector, NDC Department of Economic Development Director Chen Mei-chu (陳美菊) said.
The index of leading indicators, which projects the economic landscape over the next six months, increased 0.41 percent to 101.18, as gains in export orders, equity prices, manufacturing sentiment and money supply offset declines in construction floor areas, semiconductor equipment imports, and net hiring in the industry and services sectors, the report showed.
The coincident indicators index, which reflects current economic conditions, fell slightly to 104.85, weighed down by mild drops in industrial production, machinery and electrical imports, and manufacturing sales, even as exports, electricity use, retail and restaurant revenue, and overtime hours rose, the report showed.
Investment momentum is expected to remain strong, as semiconductor and supply-chain companies expand capacity to seize AI opportunities, Chen said.
Multinational firms are also increasing operations in Taiwan, while government-led AI initiatives and public-works projects continue at record speed, underpinning domestic demand and business confidence, she said.
TECH CORRIDOR: The new Phase II site is expected to work with other facilities in the region and nation as TSMC looks to shape the future with its manufacturing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would build three additional advanced packaging facilities in Phase II of the Chiayi Science Park (嘉義科學園區), National Science and Technology Council (NSTC) Minister Wu Cheng-wen (吳誠文) said yesterday. Speaking at the groundbreaking ceremony for the Phase II, Wu said the roughly 90-hectare site would be developed into an advanced packaging industry cluster led by TSMC. Two advanced packaging facilities at Phase I began mass production last month. Wu said that the Phase II development of the Chiayi Science Park would strengthen the resilience of the regional economy and help transform Chiayi County into a global production
MOMENTUM: Second-quarter revenue reached NT$1.27 trillion as the June turnover surged, while TSMC’s 2nm process spending and US expansion remain focus points Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported its highest quarterly sales amid strong global demand for artificial intelligence (AI) applications. The world’s largest contract chipmaker posted NT$1.27 trillion (US$39.5 billion) in consolidated revenue for the second quarter of this year, up 36 percent year-on-year and nearly 12 percent from a quarter earlier. The quarterly figure was bolstered by a very strong performance last month, when TSMC’s revenue was up 67.9 percent from a year earlier and rose 6.2 percent from a month earlier to NT$442.68 billion, a new monthly high, TSMC said in a statement. At its earnings conference in April, TSMC
United Microelectronics Corp (UMC, 聯電), the second largest contract chipmaker in Taiwan, said yesterday that it has started mass production of silicon photonics wafers at its 12-inch wafer fab in Singapore. The first batch of silicon photonics wafers in commercial production was achieved in collaboration with Singapore-based silicon photonics fabless firm Silith Technology Pte Ltd, which took delivery of the batch of products, UMC said in a statement. UMC said the cooperation integrated Silith’s photonics design expertise with UMC’s 12-inch wafer production capacity and process capabilities to support high-volume production of the Singaporean partner’s 1.6 terabits per second (1.6T) silicon photonics platform. The
ASML Holding NV plans to raise prices for its chipmaking equipment, setting up a potential clash with its biggest customer, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), The Information reported on Wednesday, citing people familiar with the matter. TSMC is already pushing back against the Dutch toolmaker’s plans, The Information reported. TSMC declined to comment. A representative for ASML pointed to comments by its chief financial officer, Roger Dassen, during its earnings call on Wednesday about pricing, but declined to comment further. ASML makes the cutting-edge extreme ultraviolet (EUV) lithography machines that are necessary for chipmakers to manufacture advanced semiconductors and is experiencing a surge