Exports last month contracted 13.3 percent from a year earlier to US$35.96 billion, shrinking for the eighth consecutive month, as demand for technology and non-tech products remained weak amid a global economic slowdown, the Ministry of Finance said yesterday.
“Shipments of personal computers bucked the downtrend with an impressive increase, but it is too early to speculate on a recovery in light of unfavorable macro-environment,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told an online news conference.
Major tech firms gave conservative guidance for this quarter and visibility beyond that remains poor, Tsai said, adding that inventory adjustments would persist next quarter as indicated by Taiwan Semiconductor Manufacturing Co (台積電), the sole supplier of chips used in Apple Inc’s iPhones.
Photo: I-Hwa Cheng, REUTERS
Tsai said she expects a decline of 12.5 to 15.5 percent in exports for this month, as global inflation and monetary tightening would continue to curb demand for tech products.
Shipments of electronics fell 8.6 percent from a year earlier to US$15.74 billion, with chip exports falling 7.1 percent to US$14.75 billion, she said, adding that the pace eased to single-digit percentages for the first time this year, a positive development.
By contrast, exports of information and communications devices grew 5.4 percent to US$5.47 billion, as suppliers reported a rebound, but it is unclear if the pickup would continue, she said.
Declines in shipments of optical devices, noticeably flat panels, narrowed to 17.8 percent, from more than 30 percent in previous months, suggesting that the worst is over for the industry, she said, citing flat-panel maker AUO Corp’s (友達) guidance.
Non-tech products were hit harder with double-digit percentage declines, and mineral products were no exception this time, in line with sapping international oil prices, Tsai said.
Shipments of textiles and chemical products plunged more than 30 percent, while exports of base metals and plastic products as well as transportation tools fell more than 20 percent, she said.
Trading with major partners registered negative growth — falling 3.6 percent in Europe and 22 percent in China — indicating that business improvement linked to China’s opening has been anemic, she said.
Japan was the only exception — with exports soaring 19.8 percent to US$3.2 billion on the back of strong demand for electronics, Tsai said.
Imports decreased at a faster pace of 20.2 percent to US$29.5 billion, giving Taiwan a trade surplus of US$6.71 billion, the ministry’s data showed.
In particular, imports of semiconductor equipment shrank 32 percent, while agricultural and industrial raw materials fell 23 percent, indicating that local firms practiced frugality and avoided expansions to save costs.
In the first four months of the year, exports reduced 17.7 percent to US$133.7 billion, while imports dropped 16.9 percent to US$118.07 billion, the ministry said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
‘SILVER LINING’: Although the news caused TSMC to fall on the local market, an analyst said that as tariffs are not set to go into effect until April, there is still time for negotiations US President Donald Trump on Tuesday said that he would likely impose tariffs on semiconductor, automobile and pharmaceutical imports of about 25 percent, with an announcement coming as soon as April 2 in a move that would represent a dramatic widening of the US leader’s trade war. “I probably will tell you that on April 2, but it’ll be in the neighborhood of 25 percent,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. Asked about similar levies on pharmaceutical drugs and semiconductors, the president said that “it’ll be 25 percent and higher, and it’ll
CHIP BOOM: Revenue for the semiconductor industry is set to reach US$1 trillion by 2032, opening up opportunities for the chip pacakging and testing company, it said ASE Technology Holding Co (日月光投控), the world’s largest provider of outsourced semiconductor assembly and test (OSAT) services, yesterday launched a new advanced manufacturing facility in Penang, Malaysia, aiming to meet growing demand for emerging technologies such as generative artificial intelligence (AI) applications. The US$300 million facility is a critical step in expanding ASE’s global footprint, offering an alternative for customers from the US, Europe, Japan, South Korea and China to assemble and test chips outside of Taiwan amid efforts to diversify supply chains. The plant, the company’s fifth in Malaysia, is part of a strategic expansion plan that would more than triple
RSS