TAIPEI (S&P Global Ratings) May 14, 2025--A persistently strong new Taiwan dollar (NT$) would erode margins for Taiwan's tech firms and weaken their cost competitiveness. While this is unlikely to significantly erode the overall financial strength of most rated tech companies in 2025-2026, it could prove more painful for those heavily reliant on domestic production with little flexibility to shift manufacturing overseas. That's according to a report S&P Global Ratings published today, titled "Taiwan Tech Brief: Margins Could Weaken Under A Persistently Strong Exchange Rate." "A weaker U.S. dollar would reduce margins on tech firms' predominantly U.S. dollar-denominated revenues, at least in the near term," said S&P Global Ratings credit analyst Anne Kuo. "We view semiconductor and component companies have
