The German Trade Office Taipei today released the 2025/2026 Business Confidence Survey Report, showing that German companies in Taiwan delivered solid operational results in 2025 despite heightened global economic uncertainty. While overall satisfaction declined to a five-year low (52.1%), 65.7% of companies met or exceeded their annual business targets, marking the third-strongest performance of the past eight years.
The survey further indicates that 40.8% of companies reported revenue growth and 40.0% achieved higher EBIT margins, while 37.1% outperformed their respective markets, led in particular by machinery and electronics. This firm company-level performance corresponds with robust bilateral economic fundamentals. In 2025, total trade between Taiwan and Germany reached US$21.7 billion, an increase of 6.0% year on year, marking the fifth consecutive year that bilateral trade remained above the US$20 billion threshold. These figures underscore the resilience of Taiwan’s economic fundamentals and demonstrate that companies continue to achieve stable growth despite external challenges.
“Although overall satisfaction has moderated, both operational results and bilateral trade data confirm that German companies in Taiwan remain highly competitive and well positioned for future growth,” said Dr. Eva Langerbeck, Chief Representative and Executive Director of the German Trade Office Taipei. “Artificial intelligence and semiconductors continue to form the core of bilateral cooperation. At the same time, global economic headwinds and evolving trade policies remain key considerations for corporate planning and investment decisions.”
AI Gains Momentum While External Risks Continue to Dominate
According to the survey, 54.2% of companies have already benefited from the global AI boom, with automation/smart manufacturing (50.0%) and semiconductors (48.5%) identified as the strongest growth areas.
Nevertheless, external risks remain the most pressing concerns. 61.1% of respondents identified global economic growth as the primary challenge, followed by cross-strait relations (58.3%) and Taiwan’s economic outlook (48.6%). Encouragingly, concerns over cross-strait impacts continued to ease. The share of companies expecting future operational effects declined to 26.8%, down 13.4 percentage points from 2023. Nearly 20% expect no impact, while a majority (53.4%) expressed a neutral view.
In addition, 75.3% of companies reported being at least slightly affected by U.S. trade policies and tariffs, mainly through reduced customer demand, increased planning uncertainty, and higher cost pressures. Import restrictions affected 24.2% of companies, while 16.7% were impacted by export restrictions, primarily due to higher compliance costs, delays, and supply-chain disruptions.
Investment Activity Holds Steady as Future Intentions Weaken
In terms of investment activity, 50.0% of companies implemented their investment plans as intended in 2025, broadly in line with 2024. However, 11.1% reduced or stopped investments. Looking ahead, investment intentions have weakened. Only 30.6% of companies plan new investments within the next two years—the first time in eight years that the share has fallen below 40%—while the proportion of undecided firms rose significantly to 30.6%. Despite growing short-term caution, long-term commitment to Taiwan remains strong. An overwhelming 94.4% of companies reported no plans to relocate their investments.
According to statistics from the Department of Investment Review, MOEA, approved German investment in Taiwan reached US$209 million in 2025, representing a year-on-year increase of 264%. This demonstrates that, despite ongoing global supply-chain adjustments, German companies continue to regard Taiwan as a strategic hub for technology and R&D in the Asia-Pacific region.
Confidence in Taiwan’s Economic Outlook Persists After Strong Growth
Looking ahead, confidence in Taiwan’s overall economic outlook remains robust. Following strong GDP growth of 8.7% in 2025, nearly 90% of respondents expect Taiwan’s economy in 2026 to remain stable or further improve (44.5% each), reflecting sustained optimism.
When asked about the most promising growth sectors, 94.4% identified semiconductors & AI, far ahead of energy & resources (38.9%) and aerospace & security (37.5%). This highlights the central role of advanced manufacturing and high-tech ecosystems in Taiwan’s future economic development. At the company level, expectations for 2026 have shifted toward greater stability. 44.5% foresee turnover growth and 33.3% anticipate higher profitability, while large majorities expect employment (67.6%) and productivity (58.6%) to remain broadly unchanged.
At today’s Economic Outlook conference, Dr. Langerbeck formally presented the 2025/2026 Business Confidence Survey Report to Deputy Minister of Economic Affairs (MOEA), Ms. Cynthia Kiang. Through continued constructive policy dialogue, the German Trade Office Taipei aims to further enhance Taiwan’s business environment and deepen bilateral economic cooperation.
The conference also featured representatives of German companies and industry experts, who exchanged views on artificial intelligence, semiconductors, energy transition, and advanced manufacturing, providing forward-looking insights into economic developments in 2026.
