Taiwan's export orders rise for 7th straight month on AI boom

Taipei, Sept. 23 (CNA) Taiwan's export orders rose more than 19 percent from a year earlier in August, marking the seventh consecutive month of year-on-year growth, driven by booming demand for artificial intelligence development, the Ministry of Economic Affairs (MOEA) said Tuesday.

Data compiled by the MOEA showed the country's export orders totaled US$60.02 billion in August, up 19.5 percent from a year earlier and beating the ministry's forecast of US$55.5 billion to US$57.5 billion. The figure was the highest for August on record.

In the first eight months of the year, Taiwan's export orders rose 21.1 percent year-on-year to US$454.15 billion, the data showed.

Huang Wei-jie (黃偉傑), head of the MOEA's Department of Statistics, told reporters the better-than-expected August performance was largely due to strong global demand for AI applications, high-performance computing (HPC) devices, and cloud services benefiting the tech sector.

In August, the electronics components industry generated US$24.88 billion in export orders, up 39.5 percent from a year earlier as the AI boom strengthened IC manufacturing and boosted sales of printed circuit boards as well as IC assembly and testing services, the MOEA said.

The information and communications industry posted US$17.06 billion in export orders, up 20.6 percent year-on-year, also boosted by robust demand for AI- and cloud-related products. Sales of servers, Internet of Things devices, and display cards all increased, the MOEA added.

Optoelectronics firms reported US$2.08 billion in export orders in August, up 9.8 percent from a year earlier on the back of higher sales of inspection and measuring equipment and backlight modules.

However, traditional industries underperformed on weaker demand caused by oversupply, which partially offset overall export growth in August, Huang said.

The base metals industry saw export orders fall 9.3 percent from a year earlier to US$1.84 billion on continued weak demand for steel products. The plastics and rubber industry reported US$1.39 billion in export orders, down 15.3 percent, as oversupply hurt demand.

The chemical industry also struggled, posting a 9.5 percent year-on-year decline in export orders to US$1.41 billion amid escalating global competition.

Bucking the downturn, the machinery industry posted US$1.72 billion in export orders in August, up 3.0 percent from a year earlier as demand for automation and semiconductor equipment increased.

According to the MOEA, Taiwan is likely to report US$64.0 billion to US$66.0 billion in export orders in September, up 19.0 percent to 22.7 percent from a year earlier.

Huang said Taiwan is well-positioned in the current AI boom, making it possible for export orders to hit a new high in 2025. However, potential U.S. tariffs on semiconductors and possible moderating growth in the second half of the year could dampen momentum, he said.