Taiwan’s exports last month grew 29.2 percent year-on-year to a record US$39.65 billion, as demand for electronics used in digital transformation and new technology applications increased, the Ministry of Finance said yesterday.
Non-tech sectors also benefited from inventory replenishment demand, fueled by a continuing global recovery that allowed their growth to be faster than technology products, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
The results outperformed her estimated gain of 23 to 27 percent despite fewer working days due to the Mid-Autumn Festival.
“All major product categories saw solid gains, although optical devices, mainly camera lenses used in smartphones and flat panels for laptops and TVs, only increased 4.8 percent, the slowest in 14 months,” Tsai said.
Demand from remote working and schooling lessened as vaccination rates improved around the world, she said, adding that China’s tightened controls of non-school educational facilities helped dampen buying interest.
That accounted for relatively lackluster showings for shipments of optical and memory products, as some suppliers opted to arrange annual maintenance of spare capacity.
Overall, exports of electronics rose 26.8 percent to US$16.58 billion, thanks to record chip shipments that swelled 27.6 percent year-on-year to US$15.11 billion, Tsai said.
Taiwan Semiconductor Manufacturing Co (台積電), the sole chip supplier for Apple Inc’s iPhone series, yesterday posted NT$152.69 billion in revenue for last month, the first rise above the NT$150 billion mark and representing a 19.7 percent upswing to a new high.
Shipments of information and communications products jumped 22.8 percent to US$5.4 billion, the ministry’s report showed.
Exports of base metal, plastic, chemical and mineral products posted steeper gains of between 32.5 and 139.8 percent from a year earlier as the US and Europe sought a return to normalcy despite ongoing COVID-19 infections.
Imports rose 40.4 percent to US$33.21 billion, as local semiconductor firms aggressively purchased capital equipment to meet business needs and upgrade technologies, the report said.
That gave Taiwan a trade surplus of US$6.45 billion, a decline of 8.6 percent from a year earlier, it said.
For the third quarter, exports advanced 30.1 percent, slightly missing the government’s August projection of 30.42 percent. Imports increased 42.5 percent, beating the forecast of 38.7 percent, the report said.
Exports are expected to remain vibrant this month with an increase of 21 to 25 percent and are likely to exceed US$40 billion, despite a high base last year, Tsai said.
For the first nine months, exports grew 30.7 percent to US$324.07 billion, while imports gained 33.3 percent to US$276.39 billion, the ministry said.
AI EFFECT: Nvidia CEO Jensen Huang moved up to 21st on the Bloomberg Billionaires Index on Thursday after his wealth skyrocketed by US$9.6 billion to US$69.2 billion The artificial intelligence (AI) mania sparked by Nvidia Corp’s sterling results has given a lift to Asia’s major chipmakers, but it has not closed the valuation gap with their US peers. A Bloomberg gauge tracking Asia’s top semiconductor firms, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co, widened its under-performance against the Philadelphia Semiconductor Index this week. While the Asian index trades at 17 times forward earnings, the US measure is at 27 times, pushing the gap close to a record after Nvidia’s blowout revenue outlook reinforced investor conviction in the boom in generative AI use. Nvidia’s 8 percent
ECONOMY TWEAK: Lowering the rate would allow more cities in China to reduce minimum mortgage rates for homebuyers, which might stimulate sluggish demand China yesterday ramped up support for its property sector with its biggest-ever cut to a key mortgage reference rate, raising expectations for more aggressive measures to support the economy in the months to come. Chinese lenders slashed their five-year loan prime rate (LPR) by 25 basis points to 3.95 percent, the People’s Bank of China said. It was the first cut since June last year and the largest reduction since a revamp of the rate was rolled out in 2019. Lowering that rate will allow more cities in China to reduce minimum mortgage rates for homebuyers, which might stimulate sluggish demand for apartments
OVERSEAS: The company is expanding with OSAT development in India, an EV factory in Thailand and possibly an 12-inch fab in Malaysia, Young Liu said Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, is expected to forge deeper and more comprehensive collaborations with its main customer Apple Inc, the company’s chairman said on Tuesday. Speaking before a dinner banquet on Tuesday to mark the company’s 50th anniversary, Hon Hai chairman Young Liu (劉揚偉) said that the two companies would forge a deeper and more extensive partnership. “Everything that should be there will be there and nothing will be missed,” Liu said, when asked about the progress made in Hon Hai’s collaborations with Apple in the artificial intelligence and electric vehicle (EV) fields. Hon
The arrival of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Japan’s Kumamoto Prefecture marks the regaining of the area’s pivotal position established during the Meiji Restoration in the 19th century, a local business leader said in an interview with CNA. The first fab of Japan Advanced Semiconductor Manufacturing Inc (JASM), TSMC’s majority-owned manufacturing subsidiary in Kumamoto, is set to open today. After the 1868 Meiji Restoration, Kumamoto was of key importance as it was home to a major garrison national defense. However, that position was ceded to Fukuoka after World War II as Japan turned to foreign trade for post-war economic development,