Export orders dropped at the fastest pace in about three years at 6.3 percent annually to US$55.4 billion last month amid a deteriorating macroeconomy, the Ministry of Economic Affairs said yesterday.
The pace of decline topped the ministry’s expectation of an annual drop of 3.6 percent. On a monthly basis, orders fell 9.1 percent, the ministry said.
With external uncertainties — surging inflation, a global economic downturn and China’s “zero COVID” policy — continuing to weigh on demand, export orders are forecast to see a steeper decline of between 14.5 percent and 17.6 percent annually this month, the ministry said.
Photo: CNA
That would translate into orders of US$54 billion to US$56 billion and mark a third consecutive month of annual contraction, the ministry projected.
“There is a 50 percent chance that export orders for the full year would decline from last year,” Department of Statistics Director Huang Yu-ling (黃于玲) said by telephone.
“November’s performance is crucial. If the results come in closer to the high end of our forecast, there would be a smaller chance that they would dip into negative territory for the full year,” she said.
During the first 10 months of this year, export orders rose 4.4 percent annually to US$564.47 billion, ministry data showed.
Taiwan has not experienced a decline in annual export orders since 2019, when they shrank 5.3 percent, ministry data showed.
Last month, orders for electronics products expanded 9.6 percent annually to US$18.86 billion, driven by increasing demand for chips used in 5G-related applications, high-performance computing devices and automotive electronics.
RESTOCKING
Inventory restocking demand ahead of the year-end shopping sprees also helped, the ministry said.
On a monthly basis, orders for electronic goods slid 8.7 percent.
Orders for information and communications technology products edged down 0.3 percent annually and 9.4 percent monthly to US$18.45 billion, as demand weakened amid inventory adjustments in the supply chain, the ministry said.
Rising demand for newly launched smartphones and networking devices was offset by a decline in orders for notebook computers and graphic cards, it said.
Orders for optoelectronics, including flat-panel displays, dropped 43.4 percent annually and 13.2 percent monthly to US$1.47 billion last month due to sluggish demand for displays used in TVs and notebook computers, as well as lower average selling prices, the ministry said.
Base metal orders plunged 35.6 percent annually and 6 percent monthly to US$2.1 billion on the back of to weak demand for steel products, while orders for machine tools fell 25.3 percent annually and 12.5 percent monthly to US$1.69 billion, as manufacturers became more conservative about capital spending.
Inventory adjustments also caused orders for plastic products to plummet 38.3 percent annually and 8.5 percent monthly to US$1.62 billion, ministry data showed.
Petrochemical products also fell 31 percent annually and 9.5 percent monthly to US$1.51 billion, the data showed.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS