Exports last month squeezed a 1.3 percent increase from a year earlier to US$31.43 billion, the second-highest for the same month despite holiday disruptions, as strong demand for artificial intelligence (AI) applications offset declines in all other product categories, the Ministry of Finance said yesterday.
The positive showing beat the ministry’s forecast of a retreat linked to fewer working days over the Lunar New Year and weak seasonality for technology products this quarter.
Stripping out the holiday effect, exports grew 9.7 percent in the first two months to US$68.62 million, driven single-handedly by information and communications technology (ICT) products, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
Photo: CNA
“Exports have expanded for four months in a row, suggesting an evident, but uneven recovery,” Tsai said.
Broad-based recovery will have to wait for a few more months, likely in May or June, she said.
Tsai’s guarded optimism came after exports of electronics shrank 10.4 percent from a year earlier, while shipments of semiconductors fell 9.9 percent, the ministry’s monthly report showed.
Furthermore, shipments of optical and precision devices plunged 32.1 percent, while non-technology products posted decreases of between 8.6 percent and 26.4 percent, it found.
Taiwan is home to the world’s leading suppliers of electronics used in smartphones, personal computers, high-performance computing chips and vehicles, among other applications.
At the same time, exports of textile products and transportation tools weakened 16.8 and 16.3 percent respectively.
Tsai attributed the poor showings to a supply glut, as well as shipping schedule adjustments due to the Red Sea crisis.
Shipments of ICT products proved the only bright spot and more than doubled on the back of fast-growing AI investments and applications, Tsai said.
Scores of Taiwanese firms are responsible for supplying AI servers, graphics processing units and other critical components, in addition to advanced chips.
Things would improve in May and June, as the current quarter is the slowest season of the year, Tsai said.
Following the holiday disruptions, exports would expand by 9 to 13 percent, she said.
Imports tumbled a steeper 17.8 percent to US$23.55 billion, giving Taiwan a trade surplus of US$7.89 billion, 2.3 times the value a year earlier, the report found.
Imports of capital equipment slumped 44.3 percent, as local firms viewed the ongoing recovery as moderate and were cautious about capital spending, Tsai said.
By geographic breakdown, the US overtook ASEAN markets as the second-largest export destination with a 22.6 percent share, Tsai said, as AI demand stemmed mainly from US clients.
China remained Taiwan’s largest export partner, but its share fell to 29.2 percent as a result of domestic and external economic struggles, she said.
China is taking a hit from a property bubble at home and technology competitions and trade disputes with the US, the official said.
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