Taiwan's exports hit 2nd highest level in May on AI boom

Taipei, June 9 (CNA) Taiwan's exports hit the second highest level ever in May, soaring over 50 percent from a year earlier, as global demand for tech gadgets remained robust during the AI boom, the Ministry of Finance (MOF) said Tuesday.

Data compiled by the ministry showed the country's outbound sales rose 51.7 percent from a year earlier to US$78.48 billion in May, second only to US$80.18 billion in March, marking the 31st consecutive month of year-on-year growth.

The data indicated Taiwan's imports totaled US$60.57 billion in May, the highest monthly level ever, rising 54.9 percent from a year earlier, while the country recorded a trade surplus of US$17.91 billion in May, up 41.8 percent year-on-year.

In the first five months of this year, Taiwan's exports totaled US$341.83 billion, up 48.7 percent from a year earlier and imports reached US$256.63 billion, up 37.8 percent, with a trade surplus of US$85.20 billion, up 95.1 percent, the MOF said.

Beatrice Tsai (蔡美娜), director-general of the MOF's Department of Statistics, said Taiwan continued to benefit from strong demand for AI infrastructure, seeing an increase in chip, server and related component shipments, while higher prices for tech products also boosted export values.

As a result, exports generated in the ICT and video/audio industry surged 75.2 percent from a year earlier to hit US$34.84 billion in May, the second highest on record, while the electronic components industry posted a new high of US$26.84 billion in monthly exports, jumping 56.0 percent, including US$25.50 billion in semiconductor sales.

The two industries accounted for 78.6 percent of the May total, the data showed.

In the old economy sector, a spike in product prices boosted base metal exports by 1.6 percent from a year earlier to US$2.75 billion in May, while the machinery industry benefited from the expanded operations of semiconductor firms to post US$2.80 billion in exports, up 22.7 percent.

An increase in international crude oil prices boosted rubber/plastics and mineral product export values by 5.9 percent and 72.4 percent, respectively, from a year earlier to US$1.77 billion and US$1.58 billion in May.

However, the transport tool and textile industries underperformed, reporting a 3.2 percent year-on-year decline and a 6.0 percent fall, respectively, in exports in May, the MOF said.

The old economy sector reported an average 14.7 percent export increase in May among major industries, Tsai said, adding it was the best performance in nearly four and a half years with Lunar New Year months excluded.

In May, the United States remained the largest market for Taiwan's goods, purchasing US$22.94 billion worth of merchandise, mostly tech products, up 47.9 percent from a year earlier.

China and Hong Kong came second after purchasing about US$19.03 billion worth of goods from Taiwan in May, ahead of the ASEAN bloc (US$18.77 billion), Europe (US$4.66 billion) and Japan (US$3.09 billion).

Amid continued AI enthusiasm, Taiwan's exports in June are estimated to hit US$75.9 billion-US$79.5 billion, up 42-49 percent from a year earlier.