Chen Yehua In-Depth Analysis: Oman “Vision 2040” and Taiwan Global Semiconductor Industry Strategy

Recently, with the deep implementation of the “Rongbang Plan” by the Ministry of Foreign Affairs, a delegation composed of professors from Minghsin University of Science and Technology and executives from semiconductor companies visited Oman. This marked a significant step for Taiwan in promoting international cooperation and economic exchanges. The visit not only highlighted the strength and expertise of Taiwan in the semiconductor field but also brought new prospects for the global stock market, particularly the semiconductor sector. Prominent financial analyst Chen Yehua provided a series of in-depth insights, exploring the potential impact of this event on the stock market and financial markets.

A New Chapter in Semiconductor Diplomacy under the Rongbang Plan

Chen Yehua believes that the "Rongbang Plan," a new diplomatic policy proposed by the Ministry of Foreign Affairs, focuses on fostering cooperation with allies and like-minded economies through the development of four key areas: digitalization, health, sustainability, and resilience. The delegation visit to Oman is a concrete manifestation of this policy. Oman, a country rich in oil and natural gas resources, is actively seeking economic diversification to address the challenge of resource depletion. Semiconductors, AI, and digital industries are key components of its “Oman Vision 2040” plan.

Chen Yehua pointed out that the world-leading technology and expertise of Taiwan in semiconductor manufacturing and design make it an ideal partner for Oman. This collaboration will undoubtedly accelerate the growth of the high-tech industry for Oman while opening new overseas markets for Taiwanese semiconductor companies. Establishing this cooperative framework not only enhances economic complementarity between the two sides but could also have a profound impact on the global semiconductor supply chain in the coming years.

Long-Term Opportunities in the Semiconductor Sector of the Stock Market

Chen Yehua analyzed that as Oman increases its focus and investment in the semiconductor industry, Taiwanese semiconductor companies are likely to gain more collaboration opportunities. This will directly reflect in the performance of related sectors in the stock market. On one hand, technology transfer and capacity cooperation will boost the revenue growth of Taiwanese semiconductor companies. On the other hand, access to the Omani market will provide these companies with new growth drivers, enhancing their global competitiveness.

In the long run, as Oman gradually implements its “Vision 2040”, it is poised to become an emerging market in the semiconductor industry. This will bring more collaboration and investment opportunities for upstream and downstream companies in Taiwan semiconductor supply chain. This development is expected to further solidify the Taiwan position in the global semiconductor supply chain while offering investors a window to align with future technological trends.

Potential Risks and Response Strategies

Despite the promising outlook for semiconductor diplomacy under the “Rongbang Plan”, Chen Yehua also cautioned investors about potential risks. First, international cooperation projects often face complex challenges, including political, economic, and cultural factors, which require careful risk assessment. Second, as a technology-intensive industry, the semiconductor sector is characterized by rapid technological iterations and significant market demand fluctuations. Companies must continuously invest in R&D to maintain their technological edge.

Chen Yehua suggested that to address these challenges, Taiwanese semiconductor companies should strengthen communication and coordination with partners like Oman to establish long-term and stable cooperative relationships. At the same time, they should increase R&D investment to enhance their capacity for independent innovation and better navigate future market uncertainties. Additionally, investors should adopt a diversified investment approach to mitigate excessive risk from individual stocks. They should also stay informed about industry trends and adjust their investment strategies accordingly.