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AI Boom Accelerates Growth in Taiwanese Exports

Last month, the volume of Taiwan’s export activity demonstrated the dynamic of growth, the pace of which turned out to be the fastest since February 2022.

AI Boom Accelerates Growth in Taiwanese Exports

The mentioned external supply of products turned out to be in the territory of high-intensity movement forward in terms of quantitative indicators, largely as a result of the activities of companies belonging to the segment of manufacturers of high-tech goods. Exports of the specified goods have more than tripled.

The total financial volume of product shipments from Taiwan in June was fixed at $39.9 billion. This figure is 23.5% higher than the result for the same period last year. The relevant information was released by the Ministry of Finance of Taiwan on Tuesday, July 9.

It is worth noting that experts interviewed by the media predicted that the financial volume of Taipei’s export activities would grow by 11.45% in June. In May, the corresponding indicator increased by 3.5%.

Manufacturers of computers and related equipment demonstrated the best performance in the context of export activity growth. The financial volume of shipments of the corresponding products from Taiwan last month amounted to $6.6 billion. This indicator increased by 324% compared to the result for the same period last year. In a statement, the Ministry of Finance of Taiwan noted that the growth in the monetary volume of exports of computers and related hardware is due to robust demand from emerging technology sectors.

Currently, Taiwan’s share of the global high-end chip market is over 70%. Local companies also produce more than 80% of personal computers and 90% of servers. In this case, it means a share in global manufacturing.

Gary Ng, a senior economist from Natixis SA, says that Taiwan continues to ride the coattails of the so-called artificial intelligence boom and cyclical rebound of technological cycles. According to the expert, the mentioned factors will become sources of positive impact on Taipei’s export performance in the coming months.

It is worth noting that the mentioned boom of artificial intelligence as a global process has one of its consequences an increase in demand for computing power, data centers, and chips, which in this case are something like a basic production element. Currently, there is a tendency for a steady growth in the number of AI systems and various apps based on this advanced technology. Moreover, artificial intelligence models are becoming more complex and more efficient. To continue the process of developing the machine intelligence industry, hardware is needed to ensure its implementation. Taiwan is a beneficiary of the mentioned process, as it supplies the material products necessary for the subsequent evolution of artificial intelligence and its existence in the current digital forms.

Taiwanese companies such as Foxconn and TSMC are major suppliers to Apple, Nvidia, and other technology giants.

Taipei’s integrated circuits export business was on a growth trajectory in June. It is worth noting that during the previous few months, the corresponding external supplies showed a decrease.

The total financial volume of shipments of electronic components from Taiwan in June was fixed at $14.58 billion. This indicator increased by 7.3% year-on-year.

Shipments from Taiwan to the United States rose by 74.2% year-on-year in June. It is worth noting that in May the corresponding indicator increased by 36.4%. Shipments to mainland China in June showed a growth of 7.3% year-on-year. In May, this indicator fell by 5.3%.

Exports of goods to ASEAN countries are also on an upward trajectory.

The Taiwan Finance Ministry’s chief statistician, Beatrice Tsai, at a briefing after the publication of information on export activity indicators, said that the peak season of external supplies begins in July. In this context, it was noted that in the current month, most of the exports will be at the June level or exceed the corresponding indicator.

The financial volume of Taiwan’s imports in June was fixed at $35.22 billion. This indicator showed an increase of 33.9% year-on-year. Experts interviewed by the media predicted that imports would rise by 15%.

As we have reported earlier, Taiwan’s Technology Sector Overcomes Challenges With AI.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.