ING note that "aside from....................>

TAIWAN: ING note that "aside from semiconductor-related products, Taiwan's

production has been dismal... The technology war between the US and Mainland

China has forced Taiwan to shift production even more in the direction of

semiconductors. This has helped Taiwan to recover faster from the damage caused

by Covid-19. More foreign capital has gone into Taiwan's semiconductor sector,

and hence strengthened the Taiwan dollar. However, the reliance on a single

growth factor could be risky. Based on better-than-expected export order growth

of 6.5% YoY in June, and 7.34% YoY growth in industrial production, as well as

our expectation that the technology war between the US and Mainland China will

continue to benefit Taiwan in 2020, we are revising our TWD forecasts stronger.

Our forecasts for USD/TWD are TWD29.30 and TWD29.10 at the end of third and

fourth quarter, respectively."