Exports last month shrank 7.3 percent from a year earlier to US$37.36 billion, compared with double-digit declines in previous months, as the high season benefited some tech products and the retreat for non-tech products also eased, the Ministry of Finance said yesterday.
The figures marked the 12th consecutive month of contractions, as demand for most product categories remained soft even though information and communications technology (ICT) devices proved the exception, thanks to booming artificial intelligence (AI) applications, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
The AI demand came mainly from the US and Europe, and might help exports return to the growth zone this month, Tsai said.
“Exports are likely to expand or contract 2 percent year-on-year this month, helped primarily by a low base,” Tsai said, adding that November has a better chance of meaningful recovery given lingering inventory adjustments.
Shipments of electronics used in smartphones, personal computers, TVs, wearables and cars fell 11.2 percent to US$15.14 billion, the ministry’s report showed.
Electronic components are a crucial barometer, as they drive 40.5 percent of exports, Tsai said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest chip supplier, has said that strong AI demand cannot offset poor sales of smartphones, laptops and other technology gadgets.
Consumers simply prefer in-person experiences and spend less on consumer electronic devices after emerging from COVID-19 pandemic restrictions, Tsai said.
The situation is expected to improve after Apple Inc releases the new-generation iPhone series next week, the official said.
Local suppliers already benefited from inventory building demand, she said, alluding to revenue pickups at smartphone camera lens maker Largan Precision Co (大立光) and TSMC.
Shipments of ICT products such as graphics cards and severs surged 43.1 percent to a new high of US$7.58 billion, while other product categories slumped by 9.6 percent to 32.8 percent, the ministry said.
Imports, a major gauge of export interest and need, plunged 22.9 percent to US$28.77 billion, giving Taiwan a trade surplus of US$8.59 billion that more than doubled the volume a year earlier.
Purchases of capital equipment dropped 31.5 percent and the acquisition of semiconductor equipment diminished 57.4 percent, the ministry said.
Dim business outlook explained why local firms refrained from capacity expansion and practiced cautious spending, Tsai said.
Car imports also faltered into the contraction territory, and Tsai said longer observation was necessary to pass judgement on a downturn. Taiwanese still have to wait for several months after placing orders for imported cars, she said.
In the first eight months, exports shrank 15.7 percent to US$278.17 billion, while imports subsided 20.5 percent to US$234.65 billion, the ministry said.
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