The nation’s exports climbed 3.7 percent year-on-year to NT$834.68 billion (US$26.68 billion) last month, outpacing the 0.7 percent growth seen in October, as domestic technology firms continue to benefit from strong demand for Apple Inc’s new handsets, the Ministry of Finance said in a report yesterday.
The uptick is likely to continue in the short term, though over-reliance on the electronics sector has raised analysts’ concerns over the overall health of the economy.
“Electronics exports continued to grow by double digits last month, led by robust sales of domestic firms, especially in the semiconductor industry,” Department of Statistics Director Yeh Maan-tzwu (葉滿足) said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies chips for Apple’ s iPhone 6 series, has indicated plans to increase capital investment expenditure next year, suggesting the need to expand capacity to meet orders, Yeh said.
That bodes well for other firms in Apply’s supply chain, the official said, adding that outbound shipments typically fare well this month ahead of the Christmas season.
Exports of electronics rose 10.2 percent to US$8.79 billion last month, making up 32.9 percent of overall exports, the report said.
Shipments of optical products increased 11 percent to US$1.74 billion last month, while basic metal products gained 9.5 percent to US$2.36 billion, the report said.
For the first 11 months, exports came to US$288.2 billion, rising 3.3 percent from the same period last year and outpacing the statistics agency’s forecast last month of 3.1 percent growth for the year.
Exports to the US, the world’s largest consumer of electronic goods, grew 11.4 percent to US$3.02 billion last month, but exports to Europe advanced at a more modest 3.7 percent at US$2.22 billion, the report said.
“Demand for Taiwan-made smartphones has softened in Europe in recent years after hitting a peak in 2011, reflecting a shift in consumer preference,” Yeh said.
Exports to China, the nation’s largest trade partner, contracted 0.3 percent to US$10.82 billion, due to the Chinese economic slowdown, the report said.
Imports increased 5.1 percent to US$22.46 billion last month, leaving the trade surplus at US$4.22 billion, the report said.
Australia and New Zealand Banking Group voiced concerns over the increasing reliance of the nation’s economy on exports of electronic goods, adding that mineral shipments contracted 17.1 percent and plastic shipments declined 4.6 percent last month.
The foreign lender is also increasingly cautious about the nation’s outlook with regards to its regional competitors and said that softening currencies in Japan and South Korea might weaken the competitiveness of the nation’s exports.
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