Fri, Aug 09, 2024 page12

• AI devices drive exports up 3.1 percent

  IMBALANCED RECOVERY: In the absence of ICT products and semiconductors, exports would have contracted because non-technology products posted concrete declines

  • By Crystal Hsu / Staff reporter
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  The nation’s exports last month rose 3.1 percent to US$39.94 billion, driven by artificial intelligence (AI) devices, as all other product categories declined, reigniting concern over an imbalanced recovery, the Ministry of Finance said yesterday.

  The amount represented a 0.1 percent increase from a month earlier, although the pace weakened noticeably from June, as a favorable base effect tapered off, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said, adding that Typhoon Gaemi played a part by taking out two working days.

  Exports continued to benefit from strong AI demand, as evidenced by a 42.4 percent spike in shipments of information and communications technology (ITC) products, mainly graphics cards and servers used in cloud data centers, a ministry report showed.

  

  Cranes, containers and an Evergreen cargo truck are pictured at the Port of Kaohsiung on May 8.

  Photo: CNA

  Active spending by US technology titans on building AI capacity enabled ICT products to replace semiconductor shipments as the biggest growth driver with a 32.4 percent share, it said.

  Exports of semiconductors declined 12.8 percent to US$12.69 billion, slipping to second place with a 31.8 percent share, as demand for smartphones and notebook computers failed to recover.

  In the absence of ICT products and semiconductors, exports would have contracted, Tsai said.

  That is because exports of non-technology products posted concrete declines, especially transportation tools and textile products, after business linked to the Paris Olympics came to an end, she said.

  Shipments of base metal, plastic and chemical products also fared badly due to tepid demand and sharp competition, Tsai said, adding that mineral products managed to counter the downturn, thanks to rising international oil prices.

  Things would improve this month, with exports likely to grow 6 to 9 percent, as the AI boom would sustain and inventory demand for next-generation smartphones and laptops would gain momentum, she said.

  Largan Precision Co (大立光), a major camera lens supplier for Apple Inc’s iPhones, earlier this week said its sales this month would remain strong. Apple is widely believed to be releasing its new iPhone series next month.

  However, Chinese smartphone brands could disappoint given a lingering economic slowdown.

  Exports to China including Hong Kong tumbled 13.5 percent to US$11.61 billion, but those to the US soared 70.3 percent, as it catches up with China as Taiwan’s largest export destination, the report said.

  The shift is due to the AI boom and global supply chain realignment, Tsai said.

  Imports picked up 16.2 percent to US$35.1 billion, as local firms displayed more interest in acquiring ICT products and capital equipment, she said.

  Imports of ICT products surged 73.7 percent, while capital equipment advanced 28.4 percent, the report said.

  Taiwan had a trade surplus of US$4.83 billion, representing a 43.2 percent fall from a year earlier, it said.

  In the first seven months, exports grew 10 percent to US$264.95 billion, while imports rose 9 percent to US$224.02 billion, it said.
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