Exports last month fell 4.5 percent to US$38.11 billion, snapping a rebound in September, as the global economic slowdown curtailed demand for tech as well as non-tech products, offsetting strong demand for devices used in artificial intelligence, the Ministry of Finance said yesterday.
The economic gauge could resume a modest uptick of 3 to 6 percent this month, as shipments of electronics could emerge from inventory adjustments and move toward a recovery, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
“That may happen this month or in January of next year at the latest,” Tsai said, adding that recent guidance by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, lent support to the observation.
Photo: CNA
TSMC said last month it has spotted early signs of stabilization in demand for personal computers and smartphones following several quarters of inventory adjustments, which suggest healthy business for next year.
Exports of electronics, which accounted for 41 percent of all outbound shipments, decreased 7.4 percent year-on-year to US$15.64 billion, as firms remained cautious in dealing with sticky inflation, monetary tightening and intensifying geopolitical tensions, Tsai said.
Conservative sentiment hit all product categories except for information and communications technology (ICT) products, which surged 37.6 percent from a year earlier to US$9 billion, thanks to exploding artificial intelligence applications in the US, she said.
That explained why shipments bound for the US market spiked 12.1 percent to a new high of US$7.19 billion, Tsai said, adding that the picture was not bright elsewhere.
Exports tumbled 22.7 percent to Japan, softened 16.8 percent to Europe and decreased 3.6 percent to China, consistent with their lackluster economic showings, Tsai said.
Shipments to ASEAN markets squeezed out a 1.5 percent increase, also on the back of ICT products, the ministry found.
Imports retreated at a faster pace of 12.3 percent to US$32.34 billion, falling for 12 months in a row, it said. The data gave Taiwan a trade surplus of US$5.77 billion, an increase of 91.2 percent from a year earlier, Tsai said.
Taiwanese firms bought US$8.85 billion worth of electronics that would later be turned into exports, another sign that a recovery might be just around the corner, she said.
However, imports of capital equipment plunged 32 percent to US$4.9 billion, with imports of semiconductor equipment diving 54.6 percent to US$1.69 billion, the ministry said.
Vanguard International Semiconductor Corp (世界先進) yesterday trimmed its capital spending for the third time to NT$9 billion (US$279.5 million) this year, citing poor sales and order visibility.
In the first 10 months, exports fell 12.9 percent to US$355.09 billion, while imports decreased 19 percent to US$295.44 billion, the ministry said.
Tsai said exports for the whole of this year are bound to weaken 10 percent from last year.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to