Taiwan sees a rise in its economy due to semiconductor demand

Amidst the shortage of semiconductors which the world is currently facing, the world leaders and tech giants have turned to the Taiwan government for aid in solving the crisis. The Taiwan Semiconductor Manufacturing Company or TSMC is the world’s largest manufacturer of silicon and has agreed to manufacture the chips at a double pace to meet the growing semiconductor demand, especially from the auto manufacturers.

The government of Taiwan strongly believes that the country’s economy will grow at its fastest pace in seven years in 2021. The statement came after the island country promised to aid in solving the global semiconductor crisis which in turn will boost the country’s exports.

According to a statistical report, the Gross domestic product will likely expand 4.64% in 2021 and a revise of fourth-quarter GDP expansion to 5.09% is also being reported. But the government of the country is extremely enthusiastic and claims a double increase in the export growth of 2021 to 9.58% from 4.59%.

The sudden prediction and decision to increase the country’s export and GDP by the government comes from the fact that it is confident in the capabilities of the country’s main chip manufacturers. The external demands of the country’s export are also increasing as a result the government aims to increase the demand for its silicon’s even more.

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“We upgraded our export outlook after considering January export data, plus the fact that Taiwanese businesses with facilities in China are investing more at home, and the changes in the global supply and demand. We expect this year’s export growth to be the strongest since 2017.”

The demand for semiconductors manufactured in Taiwan has resulted in an increase in the value of the Taiwan dollar by more than 7%. Analysts claim that the exporters and policymakers will enjoy even more gains in the coming future.

“Our trade surplus was $58.8 billion last year. We expect it to be $63.9 billion this year. This might lead to pressure on the Taiwan dollar to appreciate. Everyone should watch out for this.”

source

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