Current Edition
Our latest Business Confidence Survey Report 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. Resilient Results Despite Declining Business Satisfaction
German companies in Taiwan continued to deliver solid business results in 2025, even as overall satisfaction fell to a five-year low, with 52.1% of respondents remaining satisfied. This subdued sentiment contrasts with a markedly improved bilateral trade performance in 2025. Accordingly, 65.7% of companies met or exceeded their business targets, marking the third‑strongest performance of the past eight years. Revenue growth was reported by 40.8% of respondents, while 40.0% achieved higher EBIT margins, and 37.1% outperformed their respective markets, led by machinery and electronics.
2. AI Gains Momentum, While External Risks Continue to Dominate
German companies increasingly benefited from the global AI boom in 2025, with 54.2% reporting positive impacts, particularly in automation as well as semiconductors. Despite these opportunities, external risks remained dominant, as 61.1% cited global economic growth as their main challenge, followed by cross-strait relations and Taiwan’s economic outlook. At the same time, concerns over future cross-strait impacts continued to ease, with only 26.8% expecting operational effects. U.S. trade policies and tariffs affected 75.3% of respondents, mainly through weaker demand and higher planning and cost pressures.
3. Investment Activity Holds Steady as Future Intentions Weaken
Investment activity among German companies in Taiwan remained broadly stable in 2025, with 50.0% implementing their investment plans as intended, in line with the previous year. At the same time, 11.1% reduced or halted investments, reflecting a year‑on‑year increase and signaling growing caution. Looking ahead, investment intentions weakened noticeably, as only 30.6% planned new investments within the next two years, while an equally large share remained undecided. Despite this uncertainty, long‑term commitment to Taiwan stayed strong, with 94.4% of respondents reporting no plans to relocate their investments.
4. Confidence in Taiwan’s Economic Outlook Persists After High Growth
Confidence in Taiwan’s economic outlook remained strong, with nearly 90% of respondents expecting the economy in 2026 to remain stable or improve, despite the exceptionally high GDP growth already achieved in 2025. Semiconductors and AI were identified as the most promising growth sectors (94.4%), followed by energy and resources as well as aerospace and security. At the company level, expectations shifted toward more stable outcomes, with 44.5% anticipating turnover growth and 33.3% higher profitability. Furthermore, a large majority expect employment and productivity to remain broadly unchanged in 2026.
About the Survey
The Business Confidence Survey (BCS) 2025/2026 was conducted between November 25, 2025, and January 15, 2026. A response rate of 28% was achieved out of the 260 contacted eligible respondents.
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