Taiwan's export orders boosted by strong AI demand, up over 12% in March

Taipei, April 22 (CNA) On the back of continued solid demand for emerging technologies, including artificial intelligence applications, Taiwan reported on Tuesday that export orders in March rose more than 12 percent from a year earlier.

Data compiled by the Ministry of Economic Affairs (MOEA) showed the country's export orders stood at US$53.04 billion in March, up 12.5 percent from a year earlier after a 31.1 percent year-on-year increase in February. The March figure was in line with the MOEA's earlier estimate of US$52.0 billion-US$54.0 billion, up 10.3-14.5 percent from a year earlier.

In the first quarter of this year, export orders received by Taiwanese firms rose 12.1 percent from a year earlier to US$149.47 billion, the second highest level ever for the January-March period, the data indicated.

Speaking with reporters, MOEA Department of Statistics Director Huang Yu-ling (黃于玲) said riding the wave of AI, high-performance computing (HPC) devices and cloud services, the local tech sector continued to enjoy an export order boom in March.

Only a small number of Taiwanese firms received export orders due to clients placing orders ahead of schedule to avoid the Trump administration's tariffs, Huang said.

In March, the information and communications industry benefited from these emerging technologies and saw its export orders rise 11.4 percent from a year earlier to US$14.81 billion with orders from American buyers up US$930 million year-on-year, the MOEA said.

In the electronics industry, IC suppliers and distributors continued to report a strong performance, pushing up orders across the entire industry by 21.8 percent from a year earlier to US$20.11 billion in March, while IC designers saw a decline due to a product transition period which offset the growth in the industry as a whole, the MOEA said.

Also in March, the optoelectronics industry recorded a 10.4 percent year-on-year increase in export orders valued at US$1.89 billion on growing demand for semiconductor testing and measuring devices and a rise in orders for flat panels and camera lenses, the MOEA added.

However, the old economy sector continued to see weak global demand and escalating price competition also affected its performance in March, Huang said.

The base metal, plastics/rubber and chemical industries recorded US$2.14 billion, US$1.55 billion and US$1.46 billion in March export orders, respectively, down 3.8 percent, 6.1 percent and 8.7 percent from a year earlier, the MOEA said.

Outperforming the old economy sector, the machinery industry recorded a 2.3 percent year-on-year increase in export orders totaling US$1.70 billion on growing demand for automation devices and tool machines, the MOEA added.

In March, orders placed by the U.S. soared 30.7 percent from a year earlier to US$18.85 billion, while orders placed by ASEAN countries surged 26.3 percent from a year earlier to US$8.83 billion, according to the MOEA.

Looking ahead, demand for AI, HPC and cloud applications is expected to push up demand for high-end semiconductor processes and servers, lending support to Taiwan's export orders, the MOEA said.

However, tariff concerns and geopolitical unease are expected to create more uncertainties in the global economy, the MOEA sad.

The MOEA forecast Taiwan's export orders will range between US$50 billion and US$52.0 billion in April, up 6.2-10.4 percent from a year earlier.