Taiwan export orders extend AI-led surge to new record in September

Taiwan export orders extend AI-led surge to new record in September
AI drives Taiwan exports record

Taiwan's export orders climb to a record $114.21 billion in September, extending a run of gains driven by global demand for the island's AI chips and technology products. The monthly total tops August's first-ever $100 billion reading and exceeds analyst expectations, reinforcing Taiwan's role as a barometer for worldwide tech spending.

Highlights

  • Taiwan's September export orders surged 62.4% year-on-year to over $100 billion, surpassing forecasts and marking the 20th consecutive monthly gain.
  • Telecoms product orders jumped 87.3% and electronic product orders rose 71.0% in September, reflecting robust demand across the technology sector.
  • The Ministry of Economic Affairs anticipates October export orders to increase 62.0%-67.0% and 2023 full-year orders to reach $1.1 trillion, despite ongoing geopolitical and trade risks.

September orders set new high

As reported by Reuters, citing the Ministry of Economic Affairs, export orders jump 62.4% from a year earlier in September, marking the second straight month above $100 billion after August reached $103 billion. The result also beats analysts' forecast for a 58.7% increase and delivers a 20th consecutive monthly gain.

The ministry says the strong September performance is supported by demand for AI, high-performance computing and cloud service applications. Taiwan, home to TSMC and other major technology companies, is widely watched because orders for its goods serve as a bellwether for global technology demand.

By product category, September orders for telecoms products rise 87.3% from a year earlier, while electronic product orders increase 71.0%. The figures point to continued strength across key parts of the island's technology supply chain.

Outlook supported by chips, tempered by risks

For October, the ministry expects export orders to rise by between 62.0% and 67.0% from a year earlier, and says full-year export orders could reach $1.1 trillion. It adds that Taiwan's core position in the semiconductor and server supply chain should help maintain stable growth momentum.

At the same time, the ministry says geopolitical risks and trade policies continue to weigh on global economic growth. Regionally, orders from China rise 48.5% in September, orders from the U.S. jump 79.4%, orders from Europe increase 68.0%, and orders from Japan climb 35.5%, showing broad-based overseas demand despite those uncertainties.

In our earlier coverage of the WTO’s warning on conflict-driven trade disruption, we explained how wars and rising tariff risks are pushing companies to redesign supply chains and shipping routes in ways that could persist beyond the immediate crises. The WTO also noted that demand for AI-related products is helping cushion global trade growth even as geopolitical uncertainty continues to weigh on cross-border commerce.

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