TAIPEI (TVBS News) — The head of the Taipei Computer Association (台北市電腦公會) emphasized on Tuesday (May 6) that the recent appreciation of the New Taiwan dollar poses short-term challenges for Taiwan's export-driven industries, despite its long-term economic benefits. He spoke at the AI NECX Forum, highlighting the currency's nearly 10% rise, which has pressured corporate financial statements, particularly affecting low-profit companies.
Taipei Computer Association Chairman Peng Shuang-lang (彭双浪) noted that while the electronics and technology sectors primarily use U.S. dollar pricing and have forward hedging measures, the rapid appreciation still challenges cost management and profitability. He acknowledged that the tech industry has established robust foreign exchange hedging mechanisms. However, he warned that sudden exchange rate fluctuations could lead to losses for some companies unable to hedge in time.
Reflecting on past currency trends, Peng recalled the New Taiwan dollar's appreciation to 24 against the U.S. dollar over 30 years ago, which prompted several industrial transformations in Taiwan. He suggested that the current environment demands another transformation, with AI applications playing a pivotal role. Peng urged the government to guide companies toward high-value-added industries, asserting that Taiwan should move away from labor-intensive and energy-consuming sectors to leverage the currency's appreciation to enhance competitiveness.