By Nikki Dong and Alex Myslinski

Export Orders Continue to Rise

Export orders in August rose for the sixth consecutive month, reaching US$50.2 billion, driven by strong demand for AI chips, cloud-based servers, and new iPhone inventory replenishment, the Ministry of Economic Affairs (MOEA) reported.

Orders increased 9.1% year-on-year (YoY) in August, with total orders for the first eight months growing by 3.5% YoY to US$375.1 billion. MOEA projects that orders in September would grow between 4.7% and 8.6%, reaching US$53.8 billion to US$55.8 billion. Orders for ICT products surged 16%, while orders for electronic products increased 13.2%.

Despite this positive trend, Taiwanese companies’ confidence in future business prospects fell in August, particularly in non-tech manufacturing. The Taiwan Institute of Economic Research (TIER) attributed declining confidence to Chinese economic weakness and international price competition. TIER’s index of business confidence dropped for the third consecutive month, the institute said in a September release.

Starting mid-September, Taiwanese homebuyers with existing real estate holdings, including partial or inherited properties, are required to provide down payments of between 50% and 70%, according to the Central Bank. The new loan restrictions, up from between 30% and 40%, will not affect the government’s favorable lending terms for first-time buyers, urban renewal projects, or structurally unsafe buildings. The policy was implemented to cool the current housing boom in Taiwan.

Central Bank data showed that newly granted mortgages by Taiwan’s five major state-run banks fell below NT$100 billion for the first time in four months, reaching NT$96.7 billion, a decrease of NT$25 billion from the previous month.

Despite the decline in new mortgages, the average mortgage rate charged by the five major state-run banks rose to its highest level in over 15 years, suggesting that some banks faced tighter liquidity and higher cash flow management costs, prompting them to increase rates for non-first-time homebuyers.

In a related development, the Central Bank decided to increase the reserve requirement ratios by 0.25 percentage points while maintaining the existing policy rates. These decisions reflect the Bank’s stepped-up efforts to cool the domestic real estate market, containing housing speculation and property hoarding.

The unemployment rate rose to 3.48% in August, marking an 11-month high, driven by a rise in first-time jobseekers following the graduation season, according to the Directorate-General of Budget, Accounting and Statistics (DGBAS). The unemployment rate is expected to decline in the coming months as new graduates land positions, Census Department Deputy Director Tan Wen-ling told the media in September.

People with a university degree had the highest unemployment rate at 4.61%, followed by high-school graduates at 3.29% and those with junior college diplomas at 2.86%. Those with a graduate degree had the lowest unemployment rate at 2.79%, DGBAS said. Despite stable overall conditions, the number of people working fewer than 35 hours a week for economic reasons rose by 22,000.

U.S. Drone Delegation  Visits Taiwan

A delegation of U.S. government officials and representatives from drone companies arrived in Taipei on September 21 to meet with Taiwanese drone industry professionals and military officials.

To further drive global business opportunities in the uncrewed aerial vehicle (UAV) sector, the Ministry of Economic Affairs on September 10 announced formation of the Taiwan Elite Drone Alliance for Overseas Business Opportunities. Hu Kai-hung, chair of the Aerospace Industrial Development Corp. (AIDC), was unanimously elected as the alliance’s chairperson. The organization’s primary goal is to integrate Taiwan’s domestic drone technology and secure international orders.

At a swearing-in ceremony held in Taichung on September 23, Hu stated that the AIDC will serve as the liaison with foreign drone manufacturers and act as the coordinator among alliance members. The alliance aims to bolster domestic drone production by fostering communication and addressing each member’s operational gaps.

Merger Pending Of Two Financial Holding Firms

Taishin Financial Holdings and Shin Kong Financial Holdings (SKFH) have separately sought approval to merge from Taiwan’s Fair Trade Commission (FTC). If approved, the Taishin-SKFH merger would mark the first consensual merger among financial holding companies in Taiwan’s history.

Merger discussions were nearing conclusion on August 20 when CTBC Financial unexpectedly expressed interest in acquiring SKFH, submitting an acquisition request to the Financial Supervisory Commission (FSC). CTBC Financial, currently ranked third among domestic financial holding companies by total assets, was projected to become the largest financial holding firm in the event of successful acquisition. In contrast, a merger between Taishin Financial and SKFH would position the combined entity as the fourth largest in the industry.

However, on September 16 the FSC rejected CTBC’s acquisition proposal, describing it as a potential hostile takeover at a Taipei press conference. FSC Vice Chairperson Jean Chiu noted that CTBC’s proposal showed an inadequate understanding of SKFH’s life insurance business and failed to sufficiently protect shareholder interests. CTBC announced its withdrawal from the acquisition process on September 20.

Hon Hai Reveals New EV Model

Hon Hai Technology Group (also known as Foxconn), the world’s largest electronics manufacturer, has revealed new details about its “game-changing” new electric vehicle (EV), the Model D, ahead of its upcoming Hon Hai Tech Day on October 8 and 9.

The company collaborated with Pininfarina, an Italian car design firm known for its work with Ferrari, Peugeot, Fiat, and Maserati, to design the Model D. Hon Hai said that significant breakthroughs in smart EV technology, particularly the integration of AI into its three smart platforms – smart manufacturing, smart EVs, and smart cities – will be highlighted at Tech Day, which will be open to the public on October 9.

Hon Hai is celebrating its 50th anniversary this year. In recent years, the company has broadened its focus beyond electronics assembly, diversifying into sectors such as EVs, digital health, and robotics.