Cut-throat competition among US, Europe and Japanese electronics companies has led to a surge in Taiwan's export orders in the three months to May, with more manufacturers outsourcing operations to Taiwan-based companies, analysts say.
Orders in March totalled US$12.71 billion, up 1.7 percent year-on-year, as compared with US$12.91 billion in April. With the global economy picking up steam, Taiwan's export orders jumped to an 18-month high of US$13.14 billion in May, up 14.3 percent from a year earlier.
Toughening competition forced leading IT companies to close their own production lines and turn to Taiwan, which is noted for its thriving IT industry.
"Leading electronics companies in the US and Europe have to outsource their production after scaling back their workforces at home," said Linda Yang, manager with Barits Securities and Investment Trust Co (倍立投信). "They found Taiwan is an ideal manufacturing base, given its niche in the electronics and information/communication sectors."
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