Taiwan’s Record Exports in August 2023

TAIPEI (Reuters) – Taiwan’s exports rose more than expected in August to an all-time monthly high of nearly $44 billion, driven by strong demand for chips in the growing Artificial Intelligence (AI) industry, despite weaker demand from China.

Exports increased 16.8% year-on-year to a record $43.64 billion, exceeding the 7.35% growth forecast in a Reuters poll and July’s 3.1% increase, marking the 10th consecutive monthly rise.

The finance ministry stated, “August’s export value hit a record as business for AI and high-performance computing continued to be strong, as well as international brands stocking up on new products.”

Looking ahead, the ministry expects a “gradual upward slope” in growth as exports move into their peak season, particularly during the year-end holiday shopping in Western markets like the United States and Europe.

Taiwanese firms, notably TSMC, the world’s largest contract chipmaker, serve major clients such as Apple and Nvidia.

Exports are predicted to grow between 5% and 9% year-on-year in September.

In August, exports to the United States surged 78.5% to $11.89 billion, marking a record high, compared to a 70.3% increase in July.

Shipments to China, Taiwan’s largest trading partner, rose 1.0%, reversing the previous month’s 13.5% decline.

Total shipments of electronic components slightly increased by 0.1% in August compared to last year to $15.15 billion, despite a 0.5% drop in semiconductor exports.

Imports also rose 11.8% to $32.14 billion in August, falling short of economists’ forecasts for 15.0% growth.