The nation’s exports last month shrank 1.3 percent year-on-year to US$25.24 billion, the lowest since May 2017, as poor shipments of raw materials — due in part to price routs — more than eclipsed robust shipments of electronic components, the Ministry of Finance said yesterday.
The retreat could worsen to between 4 percent and 6 percent this month as most global nonessential businesses are closed to help contain the COVID-19 pandemic, stalling trade activity, the ministry said.
“Taiwan may feel a sharper pinch from the COVID-19 pandemic going forward, with downside risks looming larger than upside surprises,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a media briefing in Taipei.
Mineral product shipments tumbled 63.2 percent, the worst decline in history, as unprecedented shutdowns in Europe, the US and parts of Asia saw demand slump, Tsai said.
Exports of textile products fell 37.4 percent following the postponement and cancelation of sports events worldwide, including the Tokyo Summer Olympics originally scheduled for July, she said.
Taichung-based Pou Chen Corp (寶成工業), the world’s largest maker of sports shoes, apparel and accessories for Nike Inc, Adidas AG, Puma AG, New Balance Inc and Timberland Co, has instituted pay cuts and furloughs for its Taiwanese employees from June 1 to cope with sluggish demand.
Shipments of transportation equipment, such as bicycles, fell 21.4 percent as demand dwindled due to people working and attending classes from home, as well as national lockdowns, Tsai said.
Exports to Europe contracted 20.1 percent, while those to ASEAN markets subsided 12.2 percent, a ministry report said.
China appeared to be on course for a recovery with exports increasing 44.4 percent to US$11.2 billion, a 14 percent year-on-year rise, the report said.
Exports to Japan gained 17.5 percent, while those to the US inched up 1.5 percent, thanks to increased demand for electronic components, which rose 24.3 percent to US$10.08 billion, it said.
“Semiconductors, passive components and memory devices experienced a boom on the back of 5G deployment and the stay-at-home economy,” Tsai said.
The outlook for the electronic components sector looks healthy this quarter, but there is concern over a possible supply glut in the second half of the year if the pandemic persists beyond next month, she said, citing major technology firms.
Imports fell 0.5 percent to US$22.97 billion, giving the nation a trade surplus of US$2.27 billion, the ministry said.
Imports of capital equipment increased 16.5 percent, reflecting plans by local companies to upgrade their equipment and expand, it said.
In the first four months of the year, exports rose 2.4 percent to US$103.92 billion, while imports increased 2.7 percent to US$92.14 billion, it added.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
RSS