Taiwan tech exports hit record, outlook good ahead of year-end

Taiwan’s exports rose for a 17th straight month in November to a new high as its manufacturers gained from sustained demand for consumer electronics in the coming year-end shopping season and amid a global shortage of computer chips.

Exports last month were the highest monthly figure on record, rising 30.2 per cent from a year earlier to US$41.58 billion, the Ministry of Finance said on Tuesday (Dec 7).

A Reuters poll of analysts had forecast a rise of 23.05 per cent for November, compared with a 24.6 per cent increase in October.

The ministry attributed the growth to strong demand for tech products in the festive season in which vendors traditionally launch new models such as smartphones.

The growth was also supported by robust demand for chips, a shortage of which has crippled car plants globally and is affecting consumer electronics.

Exports of telecommunication and electronics products rose 19.5 per cent in November to reach US$5.69 billion, with semiconductor exports growing 26.7 per cent from a year earlier.

Firms such as Taiwan Semiconductor Manufacturing (TSMC) are major suppliers to Apple and other global tech giants, as well as providers of chips for auto companies and lower-end consumer electronics.

The ministry warned of risks ahead, including uncertainty over the COVID-19 pandemic, as well as supply chain bottlenecks.

But it said the strong growth should continue, with the holiday period, traditionally a busy time for Taiwan’s tech firms, helping exports, along with a steady improvement in global economic fundamentals.

Ministry official Beatrice Tsai expected exports in the fourth quarter to hit a record high.

November exports to China, Taiwan’s largest trading partner, grew an annual 18.9 per cent to US$17.14 billion, while exports to the United States jumped 39.2 per cent.

Imports leapt 33.8 per cent, above economists’ expectations for a 25.45 per cent rise and an increase of 37.2 per cent in October.

Taiwan could see December exports increase in the range of 21 per cent to 25 per cent from a year earlier, the ministry added.

China’s exports growth lost steam in November, pressured by a strong yuan, weakening demand and higher costs. Reuters