Taiwan's exports rise for 7th consecutive month in May

Taipei, June 7 (CNA) Taiwan's exports rose more than 3 percent from a year earlier in May, marking the seventh consecutive month of year-on-year increase on the back of strong global demand for Taiwanese goods, according to the Ministry of Finance (MOF) on Friday.

Data compiled by the MOF showed Taiwan's exports totaled US$37.36 billion in May, up 3.5 percent from a year earlier.

Backed by the booming artificial intelligence (AI) market, shipments of information, communication and audio-visual products in May grew by 62.4 percent to US$9.42 billion compared to the same month last year, while exports of plastics and rubber products also rose by 1.3 percent, the ministry said.

However, exports posted by the electronic component, base metal and machinery industries dropped 11 percent, 2.2 percent and 0.2 percent, respectively, from a year earlier to US$13.40 billion, US$2.56 billion and US$2.13 billion in May.

In the first five months of 2024, the country's exports totaled US$185.14 billion, up 9.1 percent from the same period of last year, the MOF data showed.

Also in May, Taiwan's imports hit US$31.31 billion, up 0.6 percent from a year earlier, with a trade surplus of US$6.05 billion.

Beatrice Tsai (蔡美娜), director-general of the MOF's Department of Statistics, said the export growth in May came on the back of a steady global economic recovery, combined with booming demand for artificial intelligence applications and high-performance computing devices, and the replenishing of supply chain inventory.

But due to geopolitical uncertainties and buyers being cautious about placing orders, the growth in exports only increased at a modest pace, Tsai said.

Speaking of the US$9.42 billion in exports generated by the information, communication and video/audio industry, she said the growth was mainly attributed to the booming demand for core AI-based products such as servers and graphics cards.

Regarding the 11 percent year-on-year slump in electronic component exports, the director-general said this was mainly due to the restructuring of the global supply chain in recent years and the reshoring of Taiwanese businesses from overseas.

Despite this, Tsai said the combined exports generated by the electronic components industry and the information, communication and video/audio sector totaled roughly US$22.82 billion in May, which was a 9.4 percent year-on-year increase.

Looking ahead, she forecasts that Taiwan's exports will continue to grow and enjoy an eighth consecutive monthly year-on-year increase in June.

Citing the latest forecast by the Directorate General of Budget, Accounting and Statistics, Tsai said AI applications will continue to expand into mobile phones, laptops and other devices in the future, which will provide huge business opportunities for the domestic semiconductor industry given its manufacturing capacity and complete ecosystem.