Taiwan’s June exports up again, boosted by strong semiconductor exports

Taiwan’s exports rose for a 12th straight month in June, and exceeded expectations, boosted by strong semiconductor exports which logged a record monthly high, with the outlook strong on pandemic-driven demand around the world for technology.

Exports rose 35.1% from a year earlier to $36.65 billion last month, the Ministry of Finance said on Wednesday, the second highest monthly figure on record.

Analysts in a Reuters poll had forecast a rise of 30.3% for June, compared with a 38.6% increase in May.

The ministry attributed the growth to the gradual re-opening of economies around the world, and continued strong demand for tech products to support remote working and studying that has been the mainstay of life during the COVID-19 pandemic.

Electronics exports hit a record high in June at $14.51 billion, with semiconductor exports growing 28.5% from a year earlier.

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

The ministry said it expected exports in the second half to continue to grow, helped by strong demand for the island’s advanced chips as well as the year-end holiday season which is traditionally a busy time for Taiwan’s tech manufacturers.

While it said it saw risks ahead from a rise in COVID-19 variants globally, the ministry said Taiwan’s economy would benefit from tech demand brought about by the pandemic as companies and people increasing move their activities online.

June exports to China, Taiwan’s largest trading partner, jumped an annual 29% to $16.15 billion, the highest monthly figure on record, while exports to the United States grew 34.5% on year.

Imports leapt 42.3%, against economists’ expectations for a 33.4% rise and an increase of 40.9% in May.

Taiwan could see July exports increase in the range of 29% to 33% from a year earlier, the ministry added.

The government has remained bullish about Taiwan’s prospects even with the pandemic at home, now being brought under control and curbs possibly being eased later this month. Reuters