The strong Taiwan dollar poses a significant challenge to non-tech exporters, impacting global trade balance. While the tech sector continues its growth trajectory, BofA’s analysis highlights how this currency strength affects various sectors like petrochemicals, textiles, machinery and metal products, among others. This creates a more complex trading environment for businesses that rely on international sales. How does this impact Taiwan’s non-tech exports? A strong TWD leads to increased prices for goods, making them less competitive globally. The ripple effect: Reduced export orders lead to decreased production activity and potential job losses in these sectors, ultimately impacting the overall economic landscape of Taiwan. This analysis suggests that while the tech sector fuels a robust economy, non-tech exports need to address the challenges posed by this currency strength. **What are the implications for businesses?** BofA’s report emphasizes specific challenges: 1) Increased competition as buyers seek cheaper alternatives from other regions with weaker currencies or lower labor costs. 2) Lower profit margins due to higher import prices, limiting their ability to absorb the impact of currency fluctuations without affecting profitability. 3) Less pricing power, making it harder for non-tech exporters to dictate prices compared to high-tech companies that have greater market share and control. **Potential solutions?** The strong TWD also presents an opportunity by reducing costs for importing raw materials and machinery. What can businesses do? Businesses must be prepared with strategies like diversifying export markets, focusing on more specialized or higher-quality products, and exploring government initiatives aimed at supporting exporters. **Key takeaway:** The Taiwan dollar’s strength is a major headwind that requires a strategic response from businesses operating within the non-tech sector of the Taiwanese economy.