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Inflation

Taiwan's first power price hike in 4 years jolts chip sector

Rate increase on heavy users comes as industry faces inflation, demand woes

A Taiwan Power Co. (Taipower) transformer station in Taipei: The utility has been under heavy financial pressure.   © Getty Images

TAIPEI -- Taiwan will increase its electricity rates by an average of 8.4%, hitting heavy industrial users while sparing households and small businesses, in the first tariff changes in four years.

The move, announced by the Ministry of Economic Affairs on Monday, reflects the dire situation in the loss-making power production sector. At the same time, it adds to the strain on Taiwan's crown jewel tech supply chain, which faces a combination of inflation and inventory pressure due to slowing demand for PCs and smartphones.

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