Taiwan’s exports beat expectations in June

Taiwan’s exports surged more than anticipated in June, driven by its crucial role in the booming artificial intelligence (AI) industry, despite a low base period.

Exports rose 23.5 per cent year-on-year (YoY) to $39.9 billion, marking the eighth consecutive month of growth and exceeding the 11.45 per cent forecast from a Reuters poll, as well as May’s 3.5 per cent gain.

The finance ministry attributed this strong performance to “business opportunities in new technology applications,” notably AI and high-performance computing. They expect continued export momentum in the second half of the year, fueled by Taiwan’s advanced chip production.

Taiwanese firms like TSMC, the world’s largest contract chipmaker, are major suppliers to Apple, Nvidia, and other tech giants. The ministry predicts July exports could rise 3 per cent to 6 per cent from a year earlier.

Exports to the United States soared 74.2 per cent, compared to a 36.4 per cent increase in May. Shipments to China, Taiwan’s largest trading partner, improved by 7.3 per cent in June, recovering from a 5.3 per cent drop in the previous month.

Overall, shipments of electronic components rose 7.3 per cent in June to $14.58 billion, with semiconductor exports up 7.6 per cent. Imports also increased significantly, jumping 33.9 per cent to $35.22 billion, surpassing economists’ forecasts of a 15 per cent gain.

Attribution: Reuters