October 2015  
Chinese economic downturn slows down global recovery
Consecutively tumbling TIER business composite indicators drag down confidence
The continuous slow down of China’s economy has caused serious impacts on the global economy given the fact that China is the second largest economy in the world after all. East Asian economies including Japan, South Korea, and ASEAN are all coping with tremendous headwind. The negative impacts are also extended to other continents, namely, America and Europe. The Fed eventually decided to keep its key interest rate unchanged in September due to worsening external conditions. As a result, the CBC was obliged to have its first rate cut by half a quarter point in 16 quarters.
Taiwan’s exports in September 2015 decreased by 14.63% on a year-on-year basis; the exports to China dropped by more than 17.1%, to ASEAN 6 dropped by 17.2%, to US dropped by 0.4%, to Europe dropped by 9.4%, and to Japan dropped by 15.1%. In addition, the continuous crude price plunge offsets the exports of petroleum related industries. As Taiwan’s imports would often be affected by exports, the imports in September 2015 also declined by 24.37% year-on-year due to almost the same reasons of declining exports. Taiwan’s total exports and imports from January till the end of September declined by 9.45% and 16.47% respectively, nevertheless giving a surplus of US$ 38.57 billion.
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Electronics retailers welcome consumption incentives
Taiwan's electronics and appliance retailers welcomed a short-term government measure to stimulate the economy by subsidizing the purchase of electrical household appliances and smartphones. Immediately after the Cabinet announced the incentives Friday morning, stock prices of leading consumer electronics retailers rose by 1.4-3 percent, with market leader Tsann Kuen 3C surging by the daily maximum of 10 percent. The Cabinet plans to set aside NT$4.08 billion (about US$125 million) to boost the economy by subsidizing the purchase of smartphones and energy efficient and water saving household appliances, including refrigerators, air conditioners, washing machines and sanitary equipment. (Source: The China Post)

Injecting Innovative New Ideas into Traditional Industry, the Ministry of Economic Affairs Helps Businesses to Develop New Opportunities Organization (Source: MOEA)
Taiwan Economic Research Monthly
The challenge of red supply chain facing Taiwan's electronic component industry
The impacts of red supply chain on Taiwan's semiconductor industry and the evaluation
Mainland China announced "national integrated circuit industry development promotion" in June, 2014, an important turning point in the semiconductor industry. The Mainland Chinese semiconductor industry has fast growth, integrated circuit design industry in particular, therefore Taiwan's mobile phone chip and second-line packaging and testing industry have to bear the brunt of incoming red supply chain.
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