Export orders dropped at the fastest pace in about three years at 6.3 percent annually to US$55.4 billion last month amid a deteriorating macroeconomy, the Ministry of Economic Affairs said yesterday.
The pace of decline topped the ministry’s expectation of an annual drop of 3.6 percent. On a monthly basis, orders fell 9.1 percent, the ministry said.
With external uncertainties — surging inflation, a global economic downturn and China’s “zero COVID” policy — continuing to weigh on demand, export orders are forecast to see a steeper decline of between 14.5 percent and 17.6 percent annually this month, the ministry said.
Photo: CNA
That would translate into orders of US$54 billion to US$56 billion and mark a third consecutive month of annual contraction, the ministry projected.
“There is a 50 percent chance that export orders for the full year would decline from last year,” Department of Statistics Director Huang Yu-ling (黃于玲) said by telephone.
“November’s performance is crucial. If the results come in closer to the high end of our forecast, there would be a smaller chance that they would dip into negative territory for the full year,” she said.
During the first 10 months of this year, export orders rose 4.4 percent annually to US$564.47 billion, ministry data showed.
Taiwan has not experienced a decline in annual export orders since 2019, when they shrank 5.3 percent, ministry data showed.
Last month, orders for electronics products expanded 9.6 percent annually to US$18.86 billion, driven by increasing demand for chips used in 5G-related applications, high-performance computing devices and automotive electronics.
RESTOCKING
Inventory restocking demand ahead of the year-end shopping sprees also helped, the ministry said.
On a monthly basis, orders for electronic goods slid 8.7 percent.
Orders for information and communications technology products edged down 0.3 percent annually and 9.4 percent monthly to US$18.45 billion, as demand weakened amid inventory adjustments in the supply chain, the ministry said.
Rising demand for newly launched smartphones and networking devices was offset by a decline in orders for notebook computers and graphic cards, it said.
Orders for optoelectronics, including flat-panel displays, dropped 43.4 percent annually and 13.2 percent monthly to US$1.47 billion last month due to sluggish demand for displays used in TVs and notebook computers, as well as lower average selling prices, the ministry said.
Base metal orders plunged 35.6 percent annually and 6 percent monthly to US$2.1 billion on the back of to weak demand for steel products, while orders for machine tools fell 25.3 percent annually and 12.5 percent monthly to US$1.69 billion, as manufacturers became more conservative about capital spending.
Inventory adjustments also caused orders for plastic products to plummet 38.3 percent annually and 8.5 percent monthly to US$1.62 billion, ministry data showed.
Petrochemical products also fell 31 percent annually and 9.5 percent monthly to US$1.51 billion, the data showed.
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
Germany is to establish its first-ever national pavilion at Semicon Taiwan, which starts tomorrow in Taipei, as the country looks to raise its profile and deepen semiconductor ties with Taiwan as global chip demand accelerates. Martin Mayer, a semiconductor investment expert at Germany Trade & Invest (GTAI), Germany’s international economic promotion agency, said before leaving for Taiwan that the nation is a crucial partner in developing Germany’s semiconductor ecosystem. Germany’s debut at the international semiconductor exhibition in Taipei aims to “show presence” and signal its commitment to semiconductors, while building trust with Taiwanese companies, government and industry associations, he said. “The best outcome
People walk past advertising for a Syensqo chip at the Semicon Taiwan exhibition in Taipei yesterday.
RSS