Export orders grew at an annual rate of 5.2 percent last month primarily fueled by strong demand for advanced chips, and testing and packaging services ahead of the launch of Apple Inc’s new iPhones, according to statistics released by the Ministry of Economic Affairs.
The ministry expects growth momentum to continue this month as seasonal holiday demand in China and consumers in the US and Europe buying Christmas gifts are predicted to stimulate demand for products made in Taiwan.
Pre-orders of smartphones from high-profile international brands, primarily Apple Inc, would also help drive the sales of domestic suppliers, the ministry said.
Hon Hai Precision Industry Co Ltd (鴻海精密) is the biggest firm assembling iPhones, while Largan Precision Co (大立光) is the largest supplier of camera lenses to Apple.
Together, that should help boost export orders to more than US$40 billion this month and and the total value of export orders could hit a record high of more than US$450 billion this year, department of statistics Director Lin Lee-jen (林麗貞) told reporters.
Last year, export orders climbed to an all-time high of US$442.9 billion, ministry statistics show.
Last month, the value of export orders was US$38.21 billion, showing growth for the seventh month in a row, and were up from US$36.3 billion seen in the same period last year, with the strongest growth coming from electronics and communications products, which are the pillars of the nation’s exports, along with machine tools.
“The growth is primarily driven by the electronics sector as launches of new mobile devices spurred demand for high-end chips, computer DRAM chips, and chip testing and packing services. Firms building up inventories also helped boost demand,” Lin said.
Electronics sector export orders jumped 12.6 percent year-on-year to US$9.76 billion last month, from US$8.67 billion seen in the same period a year ago.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which makes processors for Apple’s new iPhone 6 and iPhone 6 Plus, posted a record monthly revenue for last month of NT$69.28 billion (US$2.29 billion).
Orders of communications products increased 5.1 percent last month to US$9.42 billion from US$8.96 billion in same period the prior year, as demand for laptop computers picked up mostly from Europe.
Machinery tool orders surged 17.4 percent year-on-year to US$1.85 billion last month from the US$1.57 billion seen last year, as improved global economies helped boost demand for manufacturing equipment.
The ministry said demand for flat panels had also shown an improvement as orders shrank only 1.4 percent to US$2.81 billion last month year-on-year, thanks to an increase in demand from China and Hong Kong.
In July, orders for LCD panels contracted 7.8 percent year-on-year.
The latest export order figures suggest the nation’s external demand outlook remains positive in the coming months, thanks to the launch of the iPhone 6 and other new products, Australia and New Zealand Banking Group (ANZ) said in a note.
ANZ researchers paid personal visits to local companies last week and many are looking at sustained order flows, the note said.
The central bank is likely to keep interest rates unchanged at 1.875 percent later this week despite a tightening bias, ANZ added.
Additional reporting by Crystal Hsu
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