Taiwan’s trade surplus should hit a new high above US$70 billion this year, largely because of ongoing robust global demand for semiconductors, the Ministry of Finance said on Tuesday.
Taiwan’s largest trade surplus to date was recorded last year at US$64.9 billion from growth in the electronic component industry, including semiconductor suppliers, the ministry said in a report.
The uptrend seen in the industry is expected to continue this year and push the trade surplus to another new high, the ministry said.
Photo: CNA
The importance of that product category was seen in Taiwan’s overall trade last year with China, including Hong Kong.
China has been Taiwan’s largest export market and its biggest import source since 2013. Taiwan’s trade surplus with the Chinese market has surged in the past few years, reaching a high of US$104.7 billion last year, the ministry said.
Given that many Taiwanese electronics companies have operations in China, the surplus in electronic components totaled US$79.4 billion last year, accounting for about 76 percent of the total.
Supporting the strong showing has been an effort by leading Taiwanese semiconductor companies to localize the supply chain, which has bolstered Taiwan’s position in the global market, the ministry said.
Taiwan’s second-largest trade surplus last year was with the US, totaling a record US$26.5 billion, as trade tensions between Washington and Beijing prompted US buyers to shift their orders to Taiwanese exporters, it said.
The US was the largest source of Taiwan’s trade surplus in information and communications technology, as well as audio and video devices, the ministry said.
The surpluses with China and the US reflect Taiwan’s comprehensive semiconductor sector and strength in technology development, the report said, adding that China and the US are likely to remain the two top sources of Taiwan’s trade surplus this year.
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