Taiwan’s July Exports Rise Less Than Expected

By Jeanny Kao and Faith Hung

TAIPEI (Reuters) – Taiwan’s exports rose less than expected in July as weak demand from China offset record orders from the United States, highlighting the island’s crucial role as a supply hub for the booming artificial intelligence (AI) industry.

Exports rose 3.1% from a year earlier to $39.94 billion, according to the finance ministry, but fell short of the 6.13% forecast in a Reuters poll and trailed a 23.5% gain in June. This marks the ninth consecutive monthly rise.

The performance was softer than expected due to a mild global economic recovery, and Typhoon Gaemi which caused fewer productivity days and temporary delivery delays, the ministry stated.

The ministry anticipates a “gradual upward slope” in growth for the second half of the year as exports enter peak season, noting demand may be bolstered by the expanding AI applications in end-user products.

Taiwanese firms, including TSMC, the world’s largest contract chipmaker, are significant suppliers to major tech companies like Apple and Nvidia.

The ministry projected exports in August could increase between 6% and 9% from a year earlier.

In July, exports to the United States surged 70.3% to $11.45 billion, setting a record monthly high, compared to a 74.2% surge in June. Conversely, shipments to China—Taiwan’s largest trading partner—declined 13.5% from the previous month’s 7.3% gain.

Total shipments of electronic components fell 12.0% in July to $13.73 billion, with semiconductor exports dropping 12.8%.

Imports rose 16.2% to $35.1 billion in July, exceeding economists’ forecasts of an 11.2% gain.