OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMRUTILEA ATTEMPTS TO REVITALIZE OKUMA BY SETTING UP DATA CENTERTaiwan's export orders in August 2024 surpassed expectations, rising by 9.1 percent year-on-year to reach US$50.22 billion, driven by strong demand for chips used in artificial intelligence (AI) and high-computing applications. This outpaced the 8.35 percent growth forecast in a Reuters poll and significantly exceeded July's 4.8 percent expansion, according to Taiwan's Ministry of Economic Affairs.The growth in export orders is largely attributed to continued demand from sectors such as AI, high-performance computing, and cloud industries, as well as increased production for new consumer electronics. Taiwan, home to tech giants like TSMC (Taiwan Semiconductor Manufacturing Company), plays a pivotal role in global tech supply chains, particularly in advanced semiconductors, making its export orders a key indicator of worldwide technology demand.The Ministry of Economic Affairs expects this positive trend to continue throughout the year as AI applications expand and consumer electronics enter their peak season in the second half. For September 2024, the ministry projects export orders to grow between 4.7 percent and 8.6 percent year-on-year. A significant milestone in the revitalization of Okuma, a town severely impacted by the 2011 earthquake and tsunami, was reached with the opening of an AI startup Rutilea's first data center. The center, located on the Pacific coast, is equipped with Nvidia GPUs and aims to attract companies involved in the development of AI-based services.This new facility is a pivotal moment in Okuma's recovery. Following the 2011 disaster, the town was evacuated and remained deserted for several years. However, in recent years, various initiatives have been undertaken to rebuild the community and draw new businesses to the region.Rutilea's decision to establish the data center in Okuma was influenced by support from the Okuma Incubation Center, which offers resources and mentorship to startup entrepreneurs. The data center is expected to contribute to the local economy by creating jobs and encouraging new residents to settle in Okuma.Okuma Mayor Jun Yoshida expressed optimism, noting that the facility would play a significant role in the town's long-term growth. Rutilea's CEO, Takafumi Yano, highlighted the company's dedication to providing affordable cloud services. Remarkably, the new data center plans to offer services at one-eighth the cost of Amazon Web Services (AWS), making it an attractive option for businesses of varying sizes. TAIWAN'S EXPORT RIDING ON DEMAND FOR AI APPLICATIONS
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