Taiwan's July export orders up amid continued AI demand

Taipei, Aug. 20 (CNA) Taiwan's export orders surged 61.9 percent from a year earlier to a monthly record of US$97.94 billion in July, driven by continuing robust global demand for artificial intelligence (AI) related products, the Ministry of Economic Affairs (MOEA) said Thursday.

The increase marked the 18th consecutive month of year-on-year growth in export orders, according to the MOEA.

Export orders totaled US$602.03 billion in the first seven months of the year, up 52.5 percent from the same period last year and a record high for the January-July period.

By product category, information and communication technology products posted US$33.27 billion in export orders in July, up 89.5 percent year-on-year, while electronic products rose 71.7 percent to US$41.32 billion.

Orders for optical products fell 10.6 percent from a year earlier to US$1.81 billion in July, as demand for display panels remained weak. The decline was partly offset by continued strong demand for optical inspection and measurement equipment, the ministry said.

Among traditional products, orders for basic metal products rose 24.3 percent year-on-year to US$2.35 billion, driven by demand from the AI supply chain for copper-clad laminates, higher copper prices and increased demand for steel products. Meanwhile, machinery orders rose 31.3 percent to US$2.32 billion, supported by global semiconductor companies expanding production capacity.

Huang Wei-jie (黃偉傑), head of the MOEA's Department of Statistics, said July export orders exceeded expectations for two main reasons: server orders performed better than expected, while demand for cooling products from the AI supply chain helped drive orders for other products to a record high for July.

By major order destination, orders from the United States rose 88.9 percent year-on-year to US$40.79 billion in July, the largest monthly increase on record. Orders from China and Hong Kong rose 47.2 percent to US$17.02 billion, while those from Europe and ASEAN increased 33.1 percent to US$10.44 billion and 61.1 percent to US$16.51 billion, respectively, according to the MOEA.

Huang said the strong performance in July, along with the approaching peak season for consumer electronics in the second half of the year, makes the department more optimistic about export orders going forward. It currently forecasts August orders at between US$97 billion and US$99 billion, up 61.4-64.8 percent from a year earlier.