Slow revival, high vulnerability predicted for post-vaccine economy: Central bank

Taiwan News
Date: 2020/12/21
By: Ching-Tse Cheng, Taiwan News, Staff Writer

.TAIPEI (Taiwan News) — Taiwan's central bank is expecting a slow global economic recovery in 2021 due to major uncertainties associated with the coronavirus pandemic and the escalating trade tensions between the U.S. and China.

In its latest report, the central bank pointed out that although the distribution of coronavirus vaccines will certainly give the global economy a shot in the arm, governments worldwide still have major challenges to overcome. It said four risk factors — pandemic resurgence, high economic vulnerability, the debt burden on governments, and the U.S.-China trade war — will determine how fast the world's economy can bounce back and return to its pre-pandemic level.

Even with COVID-19 vaccines being rolled out, the central bank said there remains a possibility of pandemic resurgence. It said the service industry, which has been the hardest-hit sector during the pandemic, will likely not see huge improvements in a short period of time.

The central bank also noted the high vulnerability in the current economy. It said most countries will undergo a K-shaped recovery, which could widen pre-existing divisions and disparities in wealth between classes and industries.    [FULL  STORY]

Focus Taiwan
Date: 12/21/2020 08
By: Su Mu-chun and Joseph Yeh

Taichung, Dec. 21 (CNA) A vehicles carrier vessel loaded with 3,000 new cars worth NT$9.9 billion (US$348 million) that has docked at the port of Taichung has set a new record for the most valuable single shipload of imported cars in the port's 44-year history.

The Norway-registered Hoegh Trident docked at the port in central Taiwan early Monday after a delay of two days due to strong northeasterly winds, according to the Port of Taichung branch of Taiwan International Ports Corporation.

According to the vessel's Taiwan shipping agent, the ship was loaded with 3,000 vehicles, consisting of 1,513 Mercedes-Benzes, 1,326 BMWs, 158 Mini-Coopers, two camper vans and one excavator.

Taichung Port official Yang Wen-wu (楊文武) said the 3,000 cars have a combined value of NT$9.9 billion, and the importers of these vehicles will have to pay NT$4.05 billion in import duties and luxury taxes.    [FULL  STORY]

DELAYED LAUNCH: The release of a ‘certain smartphone product’ had a substantial effect on export figures, a government official said, without directly naming iPhones

Taipei Times
Date: Dec 22, 2020
By: Angelica Oung / Staff reporter

Taiwan’s export orders totaled a record US$57.78 billion last month, up 12 percent month-on-month and 29.7 percent year-on-year, the Ministry of Economic Affairs said yesterday.

The better-than-expected results were boosted by “a certain recently released smartphone product by an international company,” Department of Statistics Director Huang Yu-ling (黃于玲) told a news conference in Taipei.

Apple Inc, which used to release its new iPhone models in September, delayed this year’s launch to Oct. 23 due to production disruptions caused by the COVID-19 pandemic.

“We can’t give exact figures, but it’s quite clear that the smartphone launch in question has had a very substantial effect,” Huang said. “It partially explains why 59.2 percent of the goods supplied by Taiwanese exporters were manufactured abroad,” up 3.3 percentage points year-on-year.    [FULL  STORY]

Focus Taiwan
Date: 12/19/20201
By: Chang Chein-chung,
Jeffrey Wu and Frances Huang

Taipei, Dec. 19 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, will issue an additional NT$18.5 billion (US$649 million) in bonds to raise funds to increase capacity.

TSMC's board approved a plan Friday to issue NT$18.5 billion in unsecured straight corporate bonds in three tranches.

There will be a five-year NT$1.9 billion tranche with a coupon rate of 0.36 percent, a seven-year NT$10.2 billion tranche at 0.41 percent, and a 10-year NT$6.4 billion tranche at 0.45 percent.

The chipmaker said KGI Securities will serve as the lead underwriter for the bond sale.
[FULL  STORY]

Focus Taiwan
Date: 12/17/2020
By: Pan Tzu-yu, Matthew Mazzetta and Frances Huang

Taipei, Dec. 17 (CNA) Taiwan's Central Bank Governor Yang Chin-long (楊金龍) said Thursday that a move by the United States to ease its monetary policy to pump large funds into the economy has posed challenges for Taiwan in its attempts to maintain the stability of the foreign exchange market.

Speaking at a news conference after the central bank's quarterly policy-making meeting, Yang said amid the current "super easing" policy adopted by Washington to take on the economic impact resulting from COVID-19, many countries have seen their currencies rise as ample funds in the U.S. sent the American unit lower.

"Taiwan is a small and open economy, making itself no exception to U.S. influences," Yang said. "How to stabilize the local forex market has become a challenge at a time of U.S. quantitative easing."

Yang's comments came after the U.S. Treasury Department released on Wednesday the semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners. The report included Taiwan on a list of economies that the U.S. will monitor for currency manipulation. It was the first time Taiwan was included in the watch list since 2017.    [FULL  STORY]

WARNING NOTICE: A US Treasury report cited the nation’s ‘persistently’ large current account surplus and its foreign-exchange intervention in March as reasons for the move

Taipei Times
Date: Dec 18, 2020
By: Staff writer, with CNA, WASHINGTON

The US Department of the Treasury on Wednesday added Taiwan to a list of countries being monitored for currency manipulation, the first time the nation has made the list since 2017.

The department issued its semiannual report to the US Congress on the policies of the US’ top 20 trading partners, which said that Vietnam and Switzerland had met the criteria for being labeled currency manipulators.

The manipulator designation has no specific or immediate consequence, beyond short-term market impacts, but US law requires the government to engage with the listed nations to address the perceived exchange-rate imbalance.

Penalties, including exclusion from US government contracts, could be applied after a year if the label is not removed.    [FULL  STORY]

Focus Taiwan
Date: 12/16/2020
By: Pan Tzu-yu and Elizabeth Hsu

Taipei, Dec. 16 (CNA) Despite the global economic impact of the COVID-19 pandemic, Taiwan has maintained robust economic growth, with real GDP growing 3.92 percent year-on-year in the third quarter of the year and growth expected to hit 2.71 percent for 2020, according to Academia Sinica.

The top academic research institution in Taiwan released its economic forecast on Wednesday, in which it attributed economic growth to "the united efforts and actions of the government and the people to fight and control the pandemic."

Referring to Taiwan as a "shining pearl in the countercurrent of the pandemic," the institution further projected that Taiwan will see annual GDP growth rate of 4.24 percent in 2021, when the global economy is expected to recover, following recent progress in the development and rollout of vaccines for the virus.

"Revival of foreign trade and robust investment growth will continue to sustain Taiwan's solid economic growth in 2021," Academia Sinica said.    [FULL  STORY]

THREESOME: The company also unveiled the world’s first smart factory using Qualcomm’s 5G mmWave technology, with Chunghwa Telecom providing support

Taiei Times
Date: Dec 17, 2020
By: Lisa Wang / Staff reporter, in Kaohsiung

ASE Technology Holding Co (ASE, 日月光投控) yesterday said it is to invest NT$94 billion (US$3.3 billion) to develop a third smart manufacturing campus in Kaohsiung after rolling out the world’s first smart factory using Qualcomm Inc’s 5G millimeter-wave (mmWave) technology.

The project is expected to create 8,600 jobs, the world’s biggest chip testing and packaging service provider said, adding that it plans to introduce the 5G mmWave technology to its new factories as well.

ASE started to upgrade its manufacturing systems 11 years ago, using fixed-line, Wi-Fi, or 4G technologies and other hardware to connect 2,000 different machines, it said.

The company hopes to boost its workforce in Kaohsiung to 40,000 from 25,000 now, ASE chief executive officer Tien Wu (吳田玉) told a news conference in Kaohsiung.
[FULL  STORY]

TSMC announced in May it plans to spend US$12 billion on an advanced 5-nanometer fab in Arizona

Taiwan News
Date: 2020/12/15
By: Eric Chang, Taiwan News, Contributing Writer

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) purchased a large piece of land in north Phoenix for a planned semiconductor plant last Wednesday (Dec. 9) at a state land auction.

TSMC’s US$89 million bid was the only one received by Arizona at an auction for a 1,129-acre tract of undeveloped land off Interstate 17, according to AZ Central. The auction made the location of the future facility public, which TSMC had previously kept quiet since May, when the project was first announced.

TSMC has said it plans to spend US$12 billion on an advanced 5-nanometer fab, which is expected to begin construction in 2021, with chip production slated to start by 2024. The company has said the new factory will create 1,900 full-time jobs over a five-year period.    [FULL  STORY]

Focus Taiwan
Date: 12/15/2020
By: Wu Chia-jung and Frances Huang

Taipei, Dec. 15 (CNA) Taiwan Tobacco & Liquor Corp. (TTL), a state-owned cigarette and liquor brand, said Monday that it will issue year-end bonuses equal to 4.4 months of salary because of strong results in 2020 despite the adverse effect of COVID-19 on spending.

Speaking to reporters, TTL Chairman Ting Yen-che (丁彥哲) said the company beat its internal goal of NT$7.8 billion (US$277 million) in pretax profit for 2020 after posting a profit of NT$8.12 billion in the first 11 months of the year.

TTL will also likely achieve the 2020 pretax profit target of NT$8.6 billion set by the Ministry of Finance because it is only about NT$500 million away, Ting said.

"So TTL is expected to issue no less than 4.4 months of salary in year-end bonuses ahead of the Year of the Ox," which will begin in February 2021. "It is unchanged from the previous year despite the COVID-19 pandemic."    [FULL  STORY]