Minister of Economic Affairs Wang Mei-hua recently led a delegation to visit several world-class technology companies in Silicon Valley. It is estimated that she will bring back more than NT$30 billion in American R&D investment and orders to Taiwan. However, due to factors such as the Russia-Ukraine war and global inflation, experts said that it would be very difficult for Taiwan's exports to turn positive in September.
Minister of Economic Affairs Wang Mei-hua led a delegation to Silicon Valley on the 14th to visit four world-class technology companies. The delegation received warm responses from American companies and is expected to bring back NT$30 billion in American investment and orders.
Wang Mei-hua, Minister of Economic Affairs: “We probably received NT$10 billion in R&D investment from our visits. This is actually very important because it's not just about money. This R&D investment will help develop Taiwan's entire supply chain.”
Wang revealed that she mainly exchanged views with the senior management of U.S. tech companies during this trip. She also sought more cooperation projects such as the semiconductor supply chain, substantial technological know-how, and talent exchange. At the same time, she introduced Taiwan's R&D investment environment and measures, hoping that American companies can continue to increase their R&D investment amount in Taiwan. The delegation signed MOUs with a number of tech companies. However, some experts believe that the Russia-Ukraine war is not over yet. Couple this with global inflation pressure and other factors, they expect Taiwanese export growth to be negative in September and for the third quarter.
Chiu Ta-sheng, Researcher, TIER: “There's still a high inventory of IT and communication products. We will have to wait until this stock is depleted for future orders to be more visible. I think it's probably unlikely to sustain positive growth in September.”
Experts say it takes time for the Americans to process the orders that were discussed with Wang and for domestic inventory depletion of IT and communication products. Thus, Taiwan may not see the impact of the NT$30 billion in orders until next year.