HSBC: Taiwan's Exports to Remain Strong for 2-3 Years; Dollar to Stay Robust in Second Half

HSBC Bank stated on the 2nd that while the global economy faces challenges from an energy crisis, Taiwan is able to absorb rising energy costs due to its strong semiconductor export performance, making it likely to be one of the fastest-growing major economies this year. Frederic Neumann, Chief Asia Economist at HSBC, noted that Taiwan is relatively less affected by the energy crisis compared to other economies. He added that the US economy remains resilient, with high-tech investments in data centers closely linked to Taiwan's semiconductor exports. Regarding interest rates, Neumann expects the US dollar to remain strong in the second half of the year due to persistent inflation. While Taiwan's semiconductor exports are unaffected by US tariff policies, non-electronic industries may face challenges. With capital expenditures from the 'Big 4' US tech companies (Alphabet, Amazon, Meta, Microsoft) expected to continue through 2028, Taiwan's exports are projected to maintain strong growth for the next two to three years.