Export orders surpassed US$100 billion for the first time last month, driven by strong demand for artificial intelligence (AI), high-performance computing and cloud service applications, as well as rising international raw material prices, the Ministry of Economic Affairs said yesterday.
The strong order performance reflects better-than-expected demand for custom chips — known as application-specific integrated circuits (ASICs) — from major cloud service providers, the ministry said.
Last month’s orders rose 71.4 percent year-on-year to a record US$102.96 billion, the 19th consecutive month of increases and surpassing the ministry’s forecast of 61.4 to 64.8 percent growth.
Photo: CNA
Cumulative orders in the first eight months of the year grew 55 percent to US$704.99 billion, a new record for the period, the ministry said in a report.
Export orders — including those received by Taiwanese firms and produced domestically or abroad — indicate product and component shipments to overseas markets one to three months before customs clearance.
Last month, firms produced 45.7 percent of all orders overseas, up 2.3 percentage points from a year earlier, as makers of information and communications technology (ICT) products boosted production abroad, the ministry said.
Orders for ICT products (including servers, networking products and industrial PCs) increased 100.5 percent, and electronic products (including ICs and thermal components) grew 83.9 percent year-on-year last month, driven by the rapid development of emerging technology applications, the ministry said.
Conversely, orders for optoelectronic products fell 5 percent due to weak demand for flat panels, it said.
In traditional industries, semiconductor firms’ continued capacity expansion and rising copper demand amid the AI boom boosted orders for machinery and base metals by 28.3 percent and 26.8 percent respectively, the ministry said.
Orders for chemicals grew 15.4 percent due to high pharmaceutical and industrial demand, and those for plastic and rubber products rose 6.7 percent on higher raw material costs, it said.
By destination, orders last month from the US registered the largest annual increase of 88.9 percent, followed by increases of 70.5 percent from ASEAN and 58.2 percent from Europe, the ministry said.
Orders from China (including Hong Kong) grew 47.7 percent, and those from Japan were up 41.1 percent, it said.
The ministry said the booming development of AI and emerging technology applications, the promotion of AI infrastructure by various countries and increased capital expenditure by cloud service providers, coupled with the Taiwanese semiconductor and server supply chains’ key position in the world, could support growth in export orders this month, despite geopolitical risks and trade policy uncertainties.
The ministry-compiled diffusion index of export orders — a gauge of manufacturers’ order expectations for the following month — climbed above the neutral level to 52.1, suggesting that firms remain confident in their outlook.
Orders for this month are forecast to increase 50.7 to 55.1 percent year-on-year to between US$106 billion and US$109.1 billion, and the full-year figure could top US$1.1 trillion if monthly orders stay above US$100 billion from this month to December, it said.
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