Taiwan's June export orders hit record high on AI demand

Taipei, July 21 (CNA) Taiwan's export orders surged 59.4 percent from a year earlier to a record monthly high of US$95.26 billion in June, driven by robust global demand for artificial intelligence (AI), the Ministry of Economic Affairs (MOEA) said Tuesday.

The increase marked the 17th consecutive month of year-on-year growth in export orders, according to the ministry.

In the first six months of this year, export orders totaled US$504.1 billion, up 50.9 percent from the same period last year, also the highest ever for the January-June period, the MOEA said.

By product category, information and communication technology products posted US$34.15 billion in export orders in June, up 81.9 percent year-on-year, while electronic products rose 79.9 percent to US$40.50 billion, buoyed by sustained demand for AI-related technologies, high-performance computing, cloud services and servers.

Huang Wei-jie (黃偉傑), head of the MOEA's Department of Statistics, said the export performance in June exceeded expectations, with electronic products benefiting from higher memory chip prices and shipment volumes, while stronger laptop orders also boosted ICT product orders.

However, orders for optical products fell 3.3 percent from a year earlier to US$1.94 billion as inventory restocking demand softened. The decline was partly offset by continued strong demand for optical inspection and measurement equipment, the ministry said.

In the traditional sector, machinery export orders rose 17.6 percent from a year earlier to US$2.18 billion as the AI boom continued to drive demand for Taiwan's machinery products, while basic metal orders increased 16.5 percent to US$2.19 billion.

Orders from the United States totaled US$38.66 billion in June, up 83.6 percent from a year earlier, with the increase largely driven by demand for internet communications and electronic devices.

China and Hong Kong placed US$17.06 billion in orders for Taiwan goods in June, ahead of the Association of Southeast Asian Nations (ASEAN) bloc (US$15.56 billion), Europe (US$10.80 billion) and Japan (US$4.53 billion), MOEA data showed.

Both the United States and China/Hong Kong posted record-high monthly order values, the ministry said.

Huang told reporters that AI applications have continued to expand this year, prompting companies across the supply chain to expand production capacity.

Recent earnings reports and business outlooks released by major international semiconductor equipment suppliers and foundries have exceeded expectations and included upward revisions to their full-year forecasts, which should continue to support strong AI demand in the second half of the year, Huang said.

He added that export orders are likely to remain above US$90 billion a month in the second half of the year, supported by sustained AI demand and the peak season for consumer electronics, though geopolitical tensions and changes in international trade policies remain key uncertainties.

Looking ahead, the MOEA forecast July export orders of between US$93.5 billion and US$95.5 billion, representing annual growth of 54.5-57.8 percent.