Exports last month surged to a record high, fueled by strong global demand for artificial intelligence (AI) hardware and front-loaded shipments to the US ahead of potential tariff shifts, the Ministry of Finance said yesterday.
Outbound shipments spiked 38.6 percent from a year earlier to US$51.74 billion, topping US$50 billion for the first time, as global firms build up inventory over fears of renewed trade tensions once the 90-day truce between the US and China expires, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
“Exports in May turned out much hotter than expected,” Tsai said, linking the extraordinary performance to a boost from AI-related demand and increased US orders, as US customers looked to get ahead of tariff uncertainties.
Photo: AP
Exports this month are expected to range between US$45.7 billion and US$49.9 billion, with year-on-year growth of 15 percent to 25 percent, she said.
Exports have increased for 19 consecutive months, with the cumulative amount over the first five months totaling US$229.96 billion, up 24.3 percent from the same time last year, the ministry said.
The US led demand growth, with exports soaring 87.4 percent to US$15.52 billion — a monthly record in value and pace, and overtaking China as Taiwan’s biggest export destination, ministry data showed.
China including Hong Kong was the second-largest buyer, with shipments swelling 27.2 percent to US$14.06 billion, Tsai said.
Exports to ASEAN nations climbed 52.3 percent, driven by surging demand for information and communications technology (ICT) goods, while shipments to Europe slipped 0.6 percent, she said.
Shipments to Mexico rose nearly 1.7 times, as the country has become a “tariff haven” for US-bound goods, she added.
Meanwhile, ICT and audiovisual products led export categories, more than doubling from a year ago, as servers, graphics processing units and personal computer components saw significant gains, Tsai said.
Electronic component exports, mainly semiconductors, increased 28.4 percent year-on-year, supported by continued momentum in AI and high-performance computing, she said.
Mineral product exports contracted 27.4 percent due to refinery maintenance and weak oil prices, Tsai said.
The share of non-tech product shipments is shrinking, comprising less than 30 percent in May, while ICT and electronic components contributed more than 72 percent, she said.
Imports rose 25 percent year-on-year to US$39.13 billion, resulting in a trade surplus of US$12.62 billion — also a record, the ministry said.
Export strength is expected to peak this quarter and slow in the second half of the year, running counter to traditional seasonality, Tsai said.
“There are signs that some client demand has been front-loaded, which could lead to a softer third quarter,” she said.
The Directorate-General of Budget, Accounting and Statistics’ prediction that first-half exports could hit a new high of US$279.9 billion appears “comfortably achievable,” Tsai said, adding that she remains wary of downside risks from trade protectionism, shifting US tariff policies and geopolitical tensions.
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