The nation is expected to have recorded a year-on-year increase in monthly export orders for the second consecutive month last month, largely on the back of the launch of Apple Inc’s latest iPhone models, the Ministry of Economic Affairs (MOEA) said on Saturday.
The US consumer electronics giant unveiled the 4.7-inch iPhone 7 and 5.5-inch iPhone 7 Plus on Sept. 7, and global sales began on Sept. 16.
The ministry said the new iPhone range has been well received by the market, as a result of which local suppliers to Apple have benefited from increased orders from the US firm.
The ministry is scheduled to release last month’s export orders data on Thursday.
In August, Taiwan’s export orders rose 8.3 percent year-on-year to US$37.93 billion, ending 16 months of consecutive declines caused by weak global demand.
The improvements in export orders in August largely came from a rebound in orders enjoyed by the electronics sector, in particular from Apple, which was in the process of building up inventory in preparation for the launch of the new iPhones, the ministry said.
The effect of Apple’s orders continued into last month, the ministry said.
Local suppliers to Apple include Taiwan Semiconductor Manufacturing Co (台積電), which makes the A10 processor for the new iPhones, and Hon Hai Precision Industry Co (鴻海精密), which is one of the main assemblers of iPhones and iPads.
Largan Precision Co (大立光), a smartphone camera lens producer, is also among the Apple suppliers and provides the dual lenses for the iPhone 7 Plus, the first iPhone model equipped with a dual-lens camera.
Local Apple suppliers come from a wide range of high-tech industries and account for about 40 percent of local equity market capitalization.
In addition to increased orders from Apple, peak season in the global high-tech market has also boosted demand for computers and related devices from international brands, which has raised orders at Taiwanese firms in their supply chains, the ministry said.
An upturn in Internet, automotive electronics and the virtual-reality business has started to boost Taiwan’s outbound sales of information and communications and electronic devices, the ministry said, adding that export orders for the two sectors last month could exceed US$10 billion.
With international crude oil and steel prices showing signs of stabilizing, Taiwan’s export orders in petrochemical and base metal industries are expected to have trended higher last month, the ministry said.
Export orders for last month are expected to range from US$41.5 billion to US$43 billion, up about 4 percent from the same period last year, the ministry said.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
RSS