Taiwan’s exports last month fell 21.2 percent from a year earlier to US$31.51 billion, as demand weakened across all product categories, aggravated by the Lunar New Year holiday, the Ministry of Finance said yesterday.
Exports would again decline this month by a double-digit percentage due to a poor global economic outlook and it being the slow season for technology products, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
“It is noteworthy that the soft patch experienced by consumer electronics extended to chip sales, which shrank 18.3 percent in January” after holding firm last quarter, Tsai said.
Photo: CNA
Contract chipmaker United Microelectronics Corp (聯電) on Monday reported a 4.31 percent annual decline in revenue last month, with capacity running at 70 percent amid inventory corrections, Tsai said.
Advanced peer Taiwan Semiconductor Manufacturing Co (台積電) is to release its sales figures on Friday after recently saying that it expects a 14 percent sequential drop in revenue for this quarter.
Poor visibility makes projections difficult, but exports are most likely to remain in contraction mode through the first half of this year based on the Directorate-General of Budget, Accounting and Statistics’ forecast in November last year, Tsai said, adding that the agency would update its estimate later this month.
Shipments to China, Taiwan’s largest export destination, declined 33.5 percent year-on-year last month — the worst pace in 14 years, Tsai said, adding that revenge consumption, which had been expected after China ditched its “zero COVID” policy in December, was not yet visible.
China accounted for 62 percent of last month’s exports, she said.
Exports to ASEAN markets slumped 26.7 percent, while those to the US decreased 14.5 percent, more than offsetting increases of 3.1 percent and 2.5 percent to Japan and Europe, Tsai said.
“It is too early to speculate about a turnaround for any location, as shipment ups and downs are common during the process of bottom building,” she said.
Demand for plastic products and optical devices were particularly weak due to tepid end-market demand and annual maintenance, she said.
Without the Lunar New Year holiday, the decline in exports could have shrunk to 9.4 percent, Tsai said.
Imports also took a hit, falling 16.6 percent year-on-year to US$29.17 billion, giving Taiwan a trade surplus of US$2.34 billion, which was 53.3 percent lower than a year earlier, the ministry said.
Economic uncertainty dampened corporate interest in purchasing industrial and agricultural materials used for exports, Tsai said.
Firms also refrained from buying capital equipment to upgrade technology or expand capacity, she added.
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