According to the Department of Statistics, Ministry of Economic Affairs of the Republic of China (Taiwan), the research and development expenses of manufacturing listed companies reached NT$692.7 billion (approximately $22.49 billion USD) in 2023, hitting a record high. TSMC led the way with an expenditure of NT$178.7 billion (around $5.791 billion USD) and also topped the list in terms of operating income and fixed asset investment amount.
The Department of Statistics of the Ministry of Economic Affairs of the Republic of China (Taiwan) released a press statement today, summarizing the individual financial reports released by the Taiwan Stock Exchange on April 1, 2024. The focus was on “manufacturing” listed companies that have been disclosing their financial reports annually since 2019, excluding KY stocks and TDRs, totaling 1,101 companies.
In 2023, the manufacturing listed companies saw a 10.7% decrease in net revenue, totaling NT$18.770 trillion (approximately $611.76 billion USD). The decline was attributed to various industries facing challenges such as weak consumer demand for electronic products, ongoing inventory adjustments in the industry chain, and global economic slowdown affecting sectors like chemical materials and petroleum products.
The decline in profitability was evident with a 26.4% decrease in operating income for manufacturing listed companies in 2023, amounting to NT$1.4851 trillion (around $48.13 billion USD). TSMC, with an operating income of NT$907.4 billion (about $29.41 billion USD), led the pack in this category as well.
Despite the revenue and profit declines, research and development expenses continued to grow. In 2023, manufacturing listed companies spent NT$692.7 billion (approximately $22.49 billion USD) on research and development, marking a 2.9% increase from the previous year. TSMC was again at the forefront, investing NT$178.7 billion (around $5.791 billion USD) in research and development.
The investment momentum in the manufacturing industry showed signs of slowing down, with the total investment still exceeding trillions (around $324.08 billion USD), ranking as the third-highest in history. Challenges related to uncertain future economic conditions led some companies to adjust their capacity expansion plans, resulting in a 20.9% decrease in fixed asset investment for 2023.
Despite the challenges faced by the industry, some sectors like chemical materials and petroleum products saw growth in fixed asset investment, driven by factors like companies responding to net zero carbon emission trends and expanding their electronic-grade chemical production capacity.
Overall, while manufacturing listed companies experienced declines in revenue and profitability, there were notable increases in research and development expenditures, reflecting the industry’s commitment to innovation and technological advancement even in times of economic challenges.