Current Edition
Our very first Business Confidence Survey Report – Mid Year Update is now available! The survey provides an accurate snapshot of the current situation for German companies operating in Taiwan amid ongoing global economic turmoil.
Summary
1. Over Half of German Companies in Taiwan Outperform Their Markets
In the first half of 2025, more than 60 percent of German companies in Taiwan met their business targets, and 50 percent reported revenue growth. Looking ahead, one-third expect higher profitability for the remainder of the year, while 18 percent anticipate a decline. Business satisfaction, however, was slightly lower, with fewer than half content with their performance. Over the past three years—and again in the first six months of 2025—around 50 percent of German businesses have outperformed their market average, with particularly strong results in the machinery/industrial equipment and electronics/computers sectors.
2. Global Economic Growth and U.S. Tariffs Top Challenges
Reflecting recent global economic shifts, tariffs and trade negotiations with the United States became a top concern for 54 percent of German companies in Taiwan, second only to global economic growth (59 percent). Other significant issues included slow market development (42 percent), as well as cross-strait relations and Taiwan’s economic growth (41 percent each). Notably, concern over cross-strait relations dropped by 15 percentage points compared to 2024. Furthermore, one in four companies reported being affected by import restrictions, resulting in higher costs, planning and logistics uncertainty, and delays in receiving key components.
3. Stable Investments with Taiwan’s Appeal Remaining Strong
In the first half of 2025, nearly 70 percent of German companies in Taiwan implemented their investments as planned. Looking ahead, most foresee only minor adjustments, with 55 percent maintaining existing strategies and 22 percent having no new investment plans for the second half of the year. Taiwan’s appeal as an investment destination remains strong, with 65 percent rating it as equally or more attractive than other locations in the region. Market size and growth potential were the most cited factors influencing Taiwan’s attractiveness as an investment location. Those viewing Taiwan as more attractive highlighted its innovation and technology ecosystem, as well as its infrastructure.
4. Confidence in 2025 Goals but Mixed Industry Outlook
Most German companies reported confidence in achieving their 2025 goals, with only 16 percent fearing they might fall short. The outlook for industry development in the second half of the year is mixed: 23 percent are pessimistic, 31 percent optimistic, while 46 percent remain neutral. Views within the machinery sector are divided, with some optimistic and others cautious. Half of the surveyed companies expect to perform in line with the market, and 38 percent anticipate performing above average. Looking ahead three years, nearly half of German companies remain optimistic about their industry’s development, with most machinery, electronics, energy, and chemical companies expecting growth.
About the Survey
The Business Confidence Survey – Mid-Year Update 2025 was conducted from June 19 to August 4, 2025. A response rate of 27% was achieved out of the 261 contacted eligible respondents.
Your go-to source for insights into the state of German companies in Taiwan.