Semi CEO Morris Chang names 3 challenges facing Taiwan businesses

Among the government officials attending the meeting were Premier Wu Den-yih and Perng Fai-nan, governor of the Central Bank of the Republic of China (Taiwan).

On the sidelines of the event, Chang said the global economy and the Taiwanese economy were slowly on the rise. However, three challenges were facing Taiwan enterprises, and biggest of them was an appreciating Taiwan dollar, he said.

The NT fell 0.2 percent to NT$32.35 against its U.S. counterpart as of 4 p.m. local time, after advancing 0.3 percent earlier, according to Taipei Forex Inc. The currency is up 1.9 percent this year, heading for its best annual performance since 2004.

A rising NT will make Taiwan goods more expensive in the world and will present exchange loss risk for the island's mostly export-oriented manufacturers.

“It now looks like the U.S. dollar will continue to be weak for a while,” Chang said. “I believe this is a cause for concern.” The second challenge was a rise in the prices of raw materials, especially oil, Chang noted.

The third challenge, he said, was stricter controls over carbon emissions. “Participants in the climate talks in Copenhagen will reach some consensus by the end of the meeting,” he said. “In the future, carbon emissions will be subject to stricter control, and that of course will be a challenge for us.” Already, the United States has listed six greenhouse gases that pose health threats, paving way for legislation of stricter controls over these gases, namely carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.

“These are issues that you have to think about,” Chang stressed. “Exchange rates and oil prices are issues for the mid-term. Carbon reduction, via either taxation or alternative energy development, is a mid- to long-term issue.”

Responding to Chang's remarks, Perng, governor of Taiwan's central bank, said he had no comment, citing an impending bank meeting.

“I'm not at liberty to discuss monetary policies prior to our meetings,” he said.

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