Export orders last month unexpectedly bounced back 8 percent year-on-year, thanks to growing demand for semiconductors and electronics components ahead of Apple Inc’s launch of its new iPhones, the Ministry of Economic Affairs said yesterday.
That easily exceeded the ministry’s estimates last month that export orders that month would grow by between 0.7 percent and 3.3 percent.
Export orders jumped to US$41.8 billion, from US$38.72 billion, getting back on a growth track after dipping 0.1 percent in June, ministry statistics showed.
Orders from China and the US grew the fastest, at 12.5 percent and 8.4 percent to US$11.74 billion and US$10.95 billion respectively, setting a July record, the ministry said.
“The growth was propelled by new product launches, new smartphones in particular, later this year,” Department of Statistics Director-General Lin Lee-jen (林麗貞) said. “And not just one particular brand’s launches.”
Taiwanese companies play a crucial role in Apple’s supply chain, supplying components, such as processors and camera lenses, and assembling iPhones in China.
Emerging technologies including artificial intelligence, facial and fingerprint recognition, and Internet-of-Things applications also boosted demand for chips, passive components and memory chips, Lin said.
An uptick in LCD panel prices helped slow a contraction in optoelectronic goods to a 6.2 percent fall in exports last month, from a 13 percent fall in June, Lin said.
The ministry forecast that last month’s growth momentum would extend into this month and next month.
Local manufacturers expect export orders of between US$41.8 billion and US$42.8 billion this month, representing an annual expansion of 2.5 to 4.95 percent, Lin said.
Growth should be even stronger in September, when export orders traditionally hit their annual peak, boding well for full-year export order performance, Lin said.
“This year’s figure will be higher than last year, supported by seasonal demand in the second half,” Lin said.
The ministry recorded 6.8 percent year-on-year growth in export orders to US$280.24 billion in the first seven months of the year, she said.
This year’s figure should surpass last year’s record-high orders of US$492.8 billion, Lin added.
In addition to electronic products, steel and petrochemical products showed an upward trend as global crude oil prices rose, Lin said.
Cryptocurrency-related demand for computer components saw a recovery as well, she added.
Brent crude oil prices soared more than 38 percent to US$71.47 per barrel during the January-July period, ministry data showed.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into