Taiwan’s exports are expected to slow to a crawl through the end of the year, Minister of Finance Su Jain-rong (蘇建榮) said in an interview yesterday, as waning global demand piles pressure on the economy.
Growth in overseas shipments might slump to single digits this quarter, Su said in Manila.
He cited global headwinds including the US Federal Reserve’s rate hikes, and slowdowns in the US and Europe, which are major trading partners for Taiwan.
Photo: CNA
Taiwan had been enjoying nearly a year and a half of double-digit export growth during the COVID-19 pandemic, with a global computer chip shortage fueling demand for its electronics and semiconductors.
Last year the economy grew at the fastest pace since rebounding in 2010 from the global financial crisis of the prior few years.
However, this year, Taiwan has faced several challenges.
Global demand for many products has waned as inflation elsewhere skyrockets and several major economies face the prospect of a slowdown or recession.
China, another important trading partner, has struggled with ongoing COVID-19 outbreaks and lockdowns, along with a property crisis.
August export growth in Taiwan slowed to just 2 percent, the slowest pace in more than two years, prompting Department of Statistics Director-General Beatrice Tsai (蔡美娜) to warn at the time that “winter is coming” earlier than expected.
Tsai also warned that export data for last month might shrink by as much as 3 percent from a year earlier.
Export orders have also slowed.
While orders gained 2 percent in August, reversing a decline in July, purchases from China and Hong Kong fell more than 25 percent last month.
Almost 40 percent of Taiwan’s exports went to Hong Kong and China for the first eight months of the year, ministry data showed.
Taiwan is watching China’s economic progress carefully, Su said.
Sporadic lockdowns there have dented demand and confidence, becoming a major drag on growth in the world’s second-largest economy.
“We should be careful” if something happens to China’s economy, Su said, adding that Taiwan is trying to mitigate risks stemming from China by diversifying.
Shares in Taiwan closed at a new high yesterday, the first trading day of the new year, as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) continued to break records amid an artificial intelligence (AI) boom, dealers said. The TAIEX closed up 386.21 points, or 1.33 percent, at 29,349.81, with turnover totaling NT$648.844 billion (US$20.65 billion). “Judging from a stronger Taiwan dollar against the US dollar, I think foreign institutional investors returned from the holidays and brought funds into the local market,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “Foreign investors just rebuilt their positions with TSMC as their top target,
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
H200 CHIPS: A source said that Nvidia has asked the Taiwanese company to begin production of additional chips and work is expected to start in the second quarter Nvidia Corp is scrambling to meet demand for its H200 artificial intelligence (AI) chips from Chinese technology companies and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to ramp up production, sources said. Chinese technology companies have placed orders for more than 2 million H200 chips for this year, while Nvidia holds just 700,000 units in stock, two of the people said. The exact additional volume Nvidia intends to order from TSMC remains unclear, they said. A third source said that Nvidia has asked TSMC to begin production of the additional chips and work is expected to start in the second
US President Donald Trump on Friday blocked US photonics firm HieFo Corp’s US$3 million acquisition of assets in New Jersey-based aerospace and defense specialist Emcore Corp, citing national security and China-related concerns. In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the US president to believe that it might “take action that threatens to impair the national security of the United States.” The order did not name the person or detail Trump’s concerns. “The Transaction is hereby prohibited,”
RSS