By Nikki Dong and Alex Myslinski

Production, GDP Forecast Up

Taiwan’s industrial production rose 12.25% year-on-year (YoY) in Q3, driven by strong demand for AI chips, servers, and iPhone camera lenses, according to the Ministry of Economic Affairs. Manufacturing output increased 13% YoY. Semiconductor output surged 23.77%, while computer and optoelectronics production hit record highs. AI server shipments by Hon Hai Precision Industry Co. (also known as Foxconn) are set to boost Q4 production. Base metals, chemicals, and auto parts sectors reported declines, signaling an uneven recovery.

Taiwan’s semiconductor production value is forecast to rise 16.5% to NT$6.17 trillion (US$192.8 billion) in 2025, driven by AI and high-performance computing demand, according to the semi-governmental Industrial Technology Research Institute (ITRI). The foundry sector is set to benefit most, projected to grow 20.1% YoY to NT$3.86 trillion. Chip packaging and testing services could hit NT$700 billion next year. ITRI raised this year’s semiconductor growth forecast to 22%, citing strong foundry performance, though it lowered estimates for chip packaging and testing.

The Chung-Hua Institution for Economic Research (CIER) raised its 2024 GDP growth forecast for Taiwan from 3.81% to 3.96%, citing strong AI-driven exports and improved private investment. Consumer spending is projected to increase by 2.67% YoY, supported by retail events and wealth inflation. CIER expects private investment to grow by 2.89% in 2024, in contrast to last year’s 8.24% decline. The Consumer Price Index, meanwhile, is forecast to rise 2.17% this year but ease to 1.96% in 2025.

Presale and new housing prices in Taiwan rose 7.13% last quarter, while sales rates dropped 22.69%, according to Cathay Real Estate Development. Central Bank credit controls and price hikes deterred buyers, though developers put 25,068 new units on the market. New Taipei City experienced the highest price increase at 11.65% compared with the same period last year. Sinyi Realty said it anticipates that the market will need two to three quarters to adjust to tighter loan-to-value ratios.

Gogoro Announces CEO Resignation

Gogoro founder and CEO Horace Luke on September 13 stepped down from his corporate leadership roles amid an internal investigation into supply chain irregularities. The company discovered that some of its electric scooters included imported components, breaching Taiwan’s domestic production requirements to qualify for subsidies. Gogoro said it has reported these irregularities to authorities and is fully cooperating with ongoing investigations.

General Manager Henry Chiang was appointed interim CEO, while Tamon Tseng, chairperson of Ruentex Group, took over as Chairman of the Board.

This transition follows Luke’s nearly decade-long leadership, during which Gogoro emerged as a key player in electric mobility, developing a global footprint and pioneering battery-swapping technology. The company now faces challenges of resolving supply chain issues and navigating the leadership change.

NTHU Develops Smallest Quantum Computer

Researchers from National Tsing-Hua University (NTHU) on October 16 announced the development of the world’s smallest quantum computer, notable for its desk-friendly size and ability to operate at room temperature. The compact device can efficiently tackle specific complex computations using single-photon processing.

This breakthrough addresses a significant challenge in quantum technology, as most systems require extremely low temperatures to function. With potential applications in fields like cryptography and data analysis, this advance could make quantum computing more accessible for practical use.

Taipei Showcases Textile Innovation

The 2024 Taipei Innovative Textile Application Show (TITAS), which ended on October 17, showcased innovations in sustainable textiles, functional fabrics, and smart manufacturing. Organized by the Taiwan Textile Federation, the event featured 385 exhibitors from 11 countries and attracted over 31,500 visitors.

This year’s theme was centered around environmental sustainability, with products ranging from biodegradable materials to low-carbon textile manufacturing processes. TITAS also highlighted advancements in smart textiles designed for applications in sports, healthcare, and safety. Over 800 procurement meetings were held at the show, strengthening Taiwan’s role in the global textile industry. Taiwan accounts for around 70% of the global functional fabrics market, according to the Taiwan Textile Printing Dyeing & Finishing Association.

Taiwan Drills Geothermal Well

Taiwan has started to drill its first deep geothermal well, marking a significant step toward enhancing its renewable energy capabilities. Located in Yuanshan, Yilan County, the four-kilometer-deep well, overseen by state-owned CPC Corporation and supported by Academia Sinica, aims to harness geothermal energy for power generation, contributing to Taiwan’s clean energy goals and reducing reliance on fossil fuels. Geothermal energy, which utilizes heat from beneath the Earth’s surface, presents a sustainable and stable power source.