TAIPEI (Taiwan News) – Taiwan's 19 largest technology companies saw total sales increase by 13.5 percent in July 2018 when compared to July 2017, reported the Nikkei Asian Review.
The bumper summer sales indicate that the China-U.S. trade war has had limited effect on the bottom line of Taiwanese technology companies so far.
In August, the U.S. announced a tariff increase to 25 percent on US$200 billion (NT$18.36 trillion) of Chinese goods, leading China to respond in kind with a 25 percent tariff on US$60 billion on U.S. goods. The tariff increases have put the global economy on edge and forced a serious re-think of supply chains across the globe.
Taiwan's Minister of Economic Affairs, Shen Jong-chin (沈榮津) said last week that Taiwan's semiconductor industry will profit from the trade war, reasoning that U.S. companies will begin to buy from Taiwan rather than China.
Some Taiwanese electronics manufacturers also have begun to move production outside of China and to Southeast Asia, as U.S. tariffs have made Chinese manufacturing unviable.
According to the Nikkei Asian Review, 13 of the 19 surveyed companies reported higher sales in July, with total revenue for all companies totaling NT$963.1 billion.
Big winners in July include Nanya Technology who saw a sales increase of 90 percent, Foxconn who saw sales rise by 25.5 percent, and Largan Precension who saw sales grow by around 20 percent, when compared to July 2017.
This is the second good piece of economic news from Taiwan's technology industry this week, as the Taiwan Semiconductor Association announced yesterday that Q2 growth in integrated circuits was 5.8 percent, and 7.3 percent growth expected in Q3.