Taiwan's Export Riding on Demand for AI Applications

Taiwan's export orders in August 2024 surpassed expectations, rising by 9.1% 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% growth forecast in a Reuters poll and significantly exceeded July's 4.8% 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% and 8.6% year-on-year.

Key sector performances for August include:

- Telecommunication products: up 16% year-on-year

- Electronic products: up 13.2%

Geographically:

- Orders from China rose 2.6% (compared to a slight fall of 0.1% in July)

- United States orders advanced 11.2%

- Orders from Europe increased by 8.3%

- Orders from Japan were up by 2.1%

This data reinforces Taiwan's importance in the global tech ecosystem, particularly as the demand for AI and high-performance chips continues to surge.