Taiwan's export orders grow for 7th straight month

Taipei, Oct. 21 (CNA) Emerging technologies such as artificial intelligence (AI) applications, high-performance computing (HPC) devices and cloud services prompted Taiwan's export orders to grow over 4 percent from a year earlier in September, marking the seventh consecutive year-on-year increase, the Ministry of Economic Affairs (MOEA) said Monday.

Data compiled by the MOEA showed the country's export orders totaled US$53.79 billion in September, up 4.6 percent from a year earlier after a 9.1 percent year-on-year increase in August. The September figure was just shy of the ministry's earlier forecast of US$53.8 billion to US$55.8 billion, up 4.7-8.6 percent from a year earlier.

Speaking with reporters, MOEA Department of Statistics Director Huang Yu-ling (黃于玲) said that September's export orders failed to meet earlier expectations as a fall in international crude oil prices affected the value of export orders placed on chemical, mineral and plastics and rubber items.

The latest export orders were the third highest for September, trailing only US$62.9 billion in September 2021 and US$60.9 billion in September 2022.

In the first nine months of this year, Taiwan's export orders rose 3.7 percent from a year earlier to US$428.90 billion, the data indicated.

Huang said the local high-tech sector continued to benefit from solid global demand for emerging technologies to continue to record growth in export orders.

According to the MOEA, the information and communications industry generated NT$17.60 billion in export orders, up 7.0 percent from a year earlier on the back of growing orders placed on servers while a fall in orders placed on cellphones compromised the growth.

The electronics component industry got a boost from demand for semiconductors in the wake of the rising popularity of AI applications and HPC devices, and saw its export orders rise 10.5 percent from a year earlier to US$19.01 billion in September, the MOEA said.

With semiconductor suppliers keen to expand production, demand for optical inspection and testing equipment grew to boost export orders received by the optical equipment industry by 3.3 percent from a year earlier to US$1.88 billion in September, the MOEA said.

In terms of the old economy sector, also riding waves of production expansion by the semiconductor industry, the machinery industry received US$1.61 billion in export orders in September, up 3.6 percent from a year earlier, the MOEA said.

According to the MOEA, the nahinery industry posted a year-on-year increase in export orders for the fourth straight month in September.

The base metal industry posted US$2.00 billion in export orders in September, up 4.3 percent from a year earlier due to an increase in select steel products and metal items, the MOEA added.

Bucking the upturn, the chemical industry, which largely felt the pinch resulting from lower crude prices, saw its export orders falling 8.5 percent from a year earlier to US$1.37 billion in September, the MOEA said.

In addition, the plastics and rubber industry also suffered a 1.1 percent year-on-year fall in export orders with value at US$1.53 billion in September as foreign plastics suppliers kept expanding production to squeeze orders received by Taiwanese firms, the MOEA said.

In September, the United States placed the largest orders of US$18.03 billion to Taiwan's firms, up 8.3 percent from a year earlier ahead of China and Hong Kong, which placed US$10.95 billion in orders, down 3.6 percent from a year earlier, according to the MOEA.

Huang said Taiwan is expected to continue to benefit from strong global demand for emerging technologies, while a year-end buying spree is expected to add momentum to the country's export orders.

However, the global economy stayed haunted by lingering uncertainties such as geopolitical unease and trade tensions between the United States and China, which could affect demand, Huang said.

Huang said demand from end-users failed to record a full rebound as a whole so a recovery in local industries appeared uneven.

According to the MOEA, it has forecast Taiwan's export orders will range between US$53.5 billion and US$55.5 billion in October, up 1.2 percent to 5.0 percent from a year earlier to mark the eighth consecutive month of growth.

The MOEA said Taiwan is expected to report a year-on-year increase in export orders in 2024.